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How to Get Exposure to Commodities through Emerging Market Investments
Here’s some good news for commodities investors: A new wave of industrialization is taking place in the 21st century, and it may be the most important one in history. This wave is transforming a large [more…]
Industrialization Creates Demand for Physical Commodities
During parts of the 19th and 20th centuries, the global powers of the time were embroiled in a strategic geopolitical contest over control of commodities, commonly referred to as “The Great Game.” [more…]
Inelasticity Makes Commodities Unique
As an asset class, commodities have unique characteristics that separate them from other asset classes and make them attractive, whether as independent investments or as part of a broader investment strategy [more…]
Why Commodities Do Well in Times of Economic Uncertainty
Commodities are unique among all investment options. Because commodities are physical necessities for much of modern life, they provide a security that cannot be found in most other investment opportunities [more…]
Why Commodities Investments Behave Differently Than Business Investments
Some unique attributes of commodities require a different strategy than business investing. In particular, commodity investing requires the recognition that commodities take a long time to bring to market [more…]
Information Resources for the Commodities Investor
Using these resources will help you keep up to date on major events that move commodities markets. Although not all of these resources deal specifically with commodities, they are indispensable sources [more…]
The Organizational Structure of MLP Commodity Investment Firms
If you’re scratching your head trying to figure out the structure of master-limited partnership (MLP) commodity investment firms, don’t worry. Because of regulatory, legal, and corporate reasons, the structures [more…]
Commodity Investment Vehicles: Distributable and Discretionary Cash Flow
The whole reason master-limited partnerships (MLPs) exist in commodities markets is to distribute all available cash back to the MLP unit holders, which has to be done on a quarterly basis. These factors [more…]
The Nuts and Bolts of Commodity MLP Investments
How do you go about investing in commodities through a master limited partnership (MLP)? It’s quite simple, really. Because MLPs are publicly traded, you can purchase any of them on the exchange on which [more…]
Effect of the 2008 Global Financial Crisis on Commodity and Investment Markets
What started as the bursting of the real estate bubble in the United States caused a chain reaction disrupting commodity prices and threatening the very foundations of the global economic system. [more…]
The 2008 Government Bail Outs and the Effect on Commodities and Investment Markets
Because banks provide the necessary liquidity and credit availability for the global economy to function, the disruption in the banking system disrupted commodities markets, capital markets, and the real [more…]
Questions to Ask before Investing in Commodity Companies
You cannot completely eliminate risk in commodities markets, but you can sure take steps to help you reduce it. One way to minimize risk is to research all aspects of the investment you’re about to undertake [more…]
How to Check Out Commodity Managed Funds and Futures Contracts
Many investors buy on hype; they hear a certain commodity mentioned in the press, and they buy just because everyone else is buying. Buying on impulse is one of the most detrimental habits you can develop [more…]
How to Understand Commodity Fundamentals before Investing
Whether you decide to invest through futures contracts, commodity companies, or managed funds, you need to gather as much information as possible about the underlying commodity itself. This caveat is perhaps [more…]
Why You Should Diversify Your Commodity Holdings
One of the best ways to manage risk when investing in commodities is to diversify. This strategy applies on a number of levels: both diversification among [more…]
Build and Preserve Wealth in the Commodities Markets
You invest in commodities because you’ve realized that it’s better to have your money working for you than to have it sit in a bank account earning so little interest that you end up losing money when [more…]
Commodities Investments: How to Calculate Your Net Worth
Building wealth through investing in commodities takes a lot of time, effort, and discipline — unlike winning the lottery or getting a large inheritance. Achieving your financial goals takes a conscious [more…]
Commodities Investments: How to Identify Your Tax Bracket
Taxes have a direct impact on how much of the assets that you have invested in commodities you get to keep at the end of the day. You must understand the implications that taxes can have on your portfolio [more…]
Commodities Investments: How to Determine Your Risk Appetite
Risk is perhaps the single greatest enemy you face as an investor in commodities. How wonderful would life be if you could have guaranteed returns without risk? Because that’s not possible [more…]
How to Make Room in Your Portfolio for Commodities
One of the most common questions from investors is, “How much of my portfolio should I have in commodities?” The answer is usually simple: It depends. To answer that question, you have to take into account [more…]
Roles of the Partners in Commodity Master Limited Partnerships
The shares that a commodity master limited partnership (MLP) issues are called units, and investors who own these units are known as unit holders. When you invest in an MLP, you’re essentially investing [more…]
An Introduction to Commodity Managed Funds
If you think delving into commodity derivatives isn’t for you, you can access the commodity markets through funds. If you’ve invested before, you may be familiar with these two investment vehicles. [more…]
How to Invest in Cattle Commodities
Two commodities futures contracts exist for the cattle trader and investor: the live cattle and the feeder cattle contracts, which both trade on the Chicago Mercantile Exchange [more…]
How to Trade in Lean Hogs on the Commodities Market
The lean hog commodity futures contract (which is a contract for the hog’s carcass) trades on the Chicago Mercantile Exchange (CME) and is used primarily by producers of lean hogs — both domestic and international [more…]
How to Trade Frozen Pork Bellies on the Commodities Exchange
Essentially, the term pork bellies is the commodity traders’ way of saying bacon. Physically, pork bellies come from the underside of a hog and weigh approximately 12 Pounds. These pork bellies are generally [more…]
