Online Investors’ Ten Most Common Questions
4 of 10
What's the easiest way to invest in commodities?
Investing in commodities can be another way to diversify your portfolio. Investors who may fear inflation in the wake of economic stimulus packages put in place by the U.S. government, say, may see commodities as a way to protect themselves if prices skyrocket in the future.
Investing directly in commodities, such as livestock, grains, metals, and energy, can be messy. You need to understand the futures market, which is where these investments trade, and set up a separate brokerage account just to buy and sell commodities.