Quoted oil and gold miners should be safe havens of 2012

ON SPECIALIST MARKETS

As 2011 drew to a close, markets were tense and risk averse. Lack of a decisive solution to the eurozone debt problem continues to be the key concern, but worries about Asian economic stability have also recently become an important factor.

The effect a slowing Chinese economy may have is unquantifiable in view of the problems in the developed world. As far as commodities investing is concerned, it is likely that basic materials will be negatively impacted in the short-term as stocks are drawn down and large projects are delayed.  We have been arguing for a while that the two safe-havens under these circumstances are oil and gold, however, the drivers for each commodity are different. Oil prices are supported by Middle-Eastern and North African (MENA) instability as the incumbent political regimes increase spending on so...