Steven Zoernack's Schools

• Fordham University at Lincoln Center New York City, NY

• Boston University School of Engineering

Steven Zoernack's Publications

• Focus: Option interest points to further gains in Gold , Focus: Option interest points to further gains in Gold September, 2010 Focus – Option interest points to further gains Steven Zoernack, Managing Director at GoldVest says “Demand for gold has shown few signs of waning despite the metal nearing $1,300 – investment concerns about issues such as sovereign debt, a possible double-dip recession and inflation have sparked unprecedented demand for the metal”. Gold has also benefited from the historically low yields offered by Treasuries and the erosion of safe-haven fiat currencies such as the US dollar and Swiss franc as central banks pump billions of their respective currencies into the system to stimulate their economies. While record US dollar and high local-currency prices have affected tonnage demand from the physical sector, investment appetite –at both ends of the scale – continues to increase as demand for tangible/safe-haven asset types grows. As indicated by the accompanying chart, option open interest over the next 12 months signals speculators and investors are looking for the bullish momentum to continue. For December this year, the greatest concentration of open positions are around the $1,400/1,500 and $1,750 strikes; however, the proximity to the $1,300 strike suggest some pent-up buying as stop trades are activated. For the June expiration, the greatest exposures are at the $1,500 and $2,000 strikes while sizeable exposure is seen at the $2,000 and $3,000 strike basis December 2011.

• Steven Zoernack on Gold April, 2011 Source: PHGCOM Steven Zoernack possesses experience in many sectors of the financial industry. He currently serves as the Executive Director of GlobalHedge, Inc.’s flagship fund, the African Peace Fund, Ltd. At the outset of Steven Zoernack’s career, he traded gold, silver, and other precious metals. Financial professionals invest in gold for a variety of reasons. Gold has a long history of holding its value, unlike other currencies. The price of gold typically rises with the inflation index, which allows the metal to stay valuable during times of inflation. During economic downturns, gold retains its worth; for instance, during the Great Depression, the price of gold actually rose. People often turn to gold when the US dollar’s value falls, and this raises the price of the metal. Gold was selling for $1,000 per ounce in the beginning of 2008, when the dollar’s value was at a record low. Nicknamed “the crisis commodity,” gold often surpasses other investments in times of political crisis, such as government actions against other countries. As the supply of gold goes down, the prices go up, and today, the production of gold has been on a steady decline. The market determines the price of gold on a constant basis, and the prices are posted daily. When gold is hoarded due to financial concerns, inflation, or political instability, its price goes up. When it is sold, the price goes down. Simply put, gold is always in demand. Countries such as India and China place a high value on the metal for cultural reasons, and portfolio managers are turning to gold for long-term investments because when it is combined with stocks and bonds, it helps to reduce risk. Investors have several different options when purchasing gold. Bullion, or bars and coins, is an unlikely choice unless one has a place for storage; many investors do not see bullion as an option due to its illiquid nature. Exchange-traded funds (ETFs) offer a convenient way to buy and trade gold, and futures and options offer high liquidity as well. Certificates remain a popular gold investment choice, as they offer gold ownership without any of the physical issues.

• Steven Zoernack: A Commodities Primer May, 2011 As a leading asset manager, Steven Zoernack possesses a great deal of experience and understanding in commodities markets. For many, the financial markets remain a mystery, and commodity futures trading may seem particularly confusing. Question: What are commodities? Steven Zoernack: Commodities are raw products that come from the earth. For instance, corn, coffee, precious metals, oil, and cattle are all commodities. Question: How do commodities markets work? Steven Zoernack: For the most part, commodity traders speculate on the future value of a product. For instance, gold traders may buy “ownership” in gold at today’s price in hopes that the value will rise over time. While people can buy gold and take physical possession of it , they can also purchase gold as a “future.” In this case, the trader does not “take delivery” of the physical product. Instead, he or she trades the commodity at a set price and then hopes to sell it at a predetermined future date at a higher price in order to make a profit. Question: How does one enter the commodities market? Steven Zoernack: You gain access to the commodities market through your broker, just as you would with securities. Many mutual funds also feature commodity investments as part of the fund. Question: Are commodities a risky investment? Steven Zoernack : Futures contracts are usually highly leveraged, and in the hands of an inexperienced trader, they can constitute a great risk. In times of financial market volatility, precious metal commodities may be a good investment if you time your entry into the market correctly. The best way to mitigate risk is to work with an adviser and learn all the aspects of commodity trading before you enter the market.

• Steve Zoernack on Factors Driving Commodity Prices July, 2011 Over the course of his 30 years in the financial industry, Steve Zoernack has worked extensively with commodities. He discusses some of the factors that have led to record growth in commodities prices over the past year. The global financial crisis has had a discernible impact on commodities of all types, especially precious metals and food for human consumption. A number of large-scale financial factors have contributed to this perfect storm of strengthening commodities prices. Low U.S. interest rates: As the U.S. Federal Reserve has kept interest rates at record lows for several years, investors have had to turn outside the American economy to find robust returns. Commodities form a logical choice. Weak U.S. dollar: Throughout the earlier portions of the global recession, the U.S. dollar was buoyed by investors who saw the currency as a safe haven. Now that the recovery has started to pick up steam, the U.S. dollar has fallen significantly. As many commodities are priced in U.S. dollars, they have risen in response. Increased demand in emerging markets: Demand for commodities has increased substantially in China, India, and other BRIC countries, as investors look for better returns on their investments. Such demand places upward pressure on prices. Growing conditions: The current growing season has provided ideal conditions for certain agricultural commodities and poor conditions for others. In the poor category are coffee and cotton, two crops that are widely consumed around the world. Global coffee reserves are at their lowest point in decades and the price of cotton is at its highest since the American Civil War. European debt crisis: As Greece, Portugal, Ireland, and Spain continue to face major debt restructuring challenges, traders fear that the global recovery may stall and sink securities prices around the world. This fear also places upward pressure on commodities prices.

Steven Zoernack's Links