Research

In terms of the driving themes we think we hit most of the main points pretty well. Eurozone and UK credit concerns were at the forefront and remain so; we also think markets are giving more attention to the vulnerabilities of private sector European banks…

We think many of the same themes that developed in the 1Q will remain relevant in the 2Q. In particular, the primary thematic driver will remain the strength of the global economic recovery. We think this will continue to translate into a "risk on/risk off" market dynamic.…

Gold holds a unique place among commodities in that it is both a physical commodity and a financial asset. Gold's physical uses are mainly for jewelry and industrial applications, especially in electronic circuitry across a whole range of industries. Gold's place as a financial asset primarily stems from its historical role as a store of wealth, particularly during times of crisis or when other asset classes are seen to be under-performing

We think silver is uniquely positioned to continue its stellar rally in 2010. Valuations compared to gold remain extremely attractive, demand from the investment community is robust and the metal's industrial demand will rise as the global economy recovers. Our base case is that silver has potential to trade well above $20 in the year ahead…

OPEC latest forecast predicts that energy demand in 2010 will increase by 800,000 b/d. This is 70,000 barrels a day stronger than the forecast made by OPEC in November. We believe this news only lends modest support to what still is a weak fundamental position for oil. The fact that the USD is showing signs of a cyclical recovery also suggests that oil prices could be pressured lower in 2010…