Getting Started in Commodities

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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…]

Commodities Market Indicators: Private Sector Sources of Market Data

One way to identify where the commodity markets are heading is by watching certain market indicators. These key metrics provide insight into what the markets are doing and help you design and calibrate [more…]

Commodities and the Business Cycle

Commodities are cyclical in nature. Returns on commodity investments aren’t generated in a vacuum — they’re influenced by a number of economic forces. In other words, the performance of commodities, like [more…]

Are Commodities Only for the Brave?

Commodities have a reputation for being a risky asset. Many investors are simply scared of investing in this asset class. This fear is largely unfounded because, statistically, there’s no greater risk [more…]

The Pitfalls of Using Leverage with Commodities

In finance, leverage refers to the act of magnifying returns in the commodities markets through the use of borrowed capital. Leverage is a powerful tool that gives you the opportunity to control large [more…]

Effect of Government Financial Crises on Commodities and Stock Markets

In the era following the 2008 credit crisis, a more acute risk emerged for commodities: the sovereign government risk. This type of risk is more important than other types of risks because it involves [more…]

Commodities Market Indicators: U.S. Government Data

The commodity waters can be perilous at times, and knowing how to navigate them is crucial. Keeping your eye on where the markets are heading will help you develop a winning investment strategy. Data compiled [more…]

The Basics of Commodity ETFs

Exchange-Traded Funds, or ETFs, offer many advantages to commodities investors because they offer exposure to asset classes and specific investments that would otherwise be difficult for the average investor [more…]

How to Access Commodity Markets through ETFs

One of the downsides of investing in commodity Exchange-Traded Funds (ETFs) is that they can be fairly volatile because they track derivative instruments that trade in the futures markets. A downside of [more…]

Leveraged ETFs in the Commodities Market

A new breed of Exchange-Traded Funds (ETFs) is emerging and is having a major impact on the ETF and commodity landscapes: leveraged ETFs. As the name suggests, leveraged ETFs [more…]

Exchange Traded Funds Indexing the Broad Commodities Markets

Because ETFs are now in a position to offer easy access to commodities, and because the number and type of commodities they cover has expanded, you can benefit from seeing which ETFs are out there to help [more…]

Invest in Commodities through Funds and Indexes

A common misconception among investors is that you can only trade commodities by opening a futures account. While the futures markets certainly provide an avenue into the commodities markets, you have [more…]

An Introduction to Commodity Companies

Another route you can take to get exposure to commodities is to buy stocks of commodity companies. These companies are generally involved in the production, transformation, or distribution of various commodities [more…]

Why Commodity Indexes Are Useful

A commodity index tracks the price of a futures contract of an underlying physical commodity on a designated exchange. When you invest through one of the commodity indexes, you’re actually investing in [more…]

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