The Beginner’s Guide On How To Start Investment In Commodities In Today’s Market

Fri, Mar 8, 2013

Start Investment In Commodities Now

Start Investment In Commoditiesinvesting in commodities can be one of the most rewarding and profitable investments you’ll ever find as an investor.

Investment in commodities have many unique features which can make them better than most other widely-held investments like stocks, bonds, and real estate.

For example, commodities prices are not highly correlated to the prices of other financial assets. In the last great run for commodities in the 1970s, stocks fell 50% and bonds dropped steadily. Meanwhile, commodities like gold, oil, and silver delivered as much as 10-to-1 returns for early investors.

Furthermore, investment in commodities   that act as hedge against inflation. In the years ahead that will keep commodities very much in demand from investors.

Here are the four best ways for individual investors to know how to invest in commodities :

Best Commodity Investment #1: Mining Stocks

Mining stocks offer investors the most leverage to commodities prices most of them will be able to handle.

Basically, mining companies live and die with the price of the commodities they mine. In bear markets for commodities, mining stocks tend to barely breakeven. They’re in survival mode. But in commodities bull markets, mining companies’ revenues, earnings and share prices soar exponentially.

Mining stocks are one of the simplest investments to make of all  investment in commodities .

Best Commodity Investment #2: Exchange Trade Funds and Notes

Commodities-focused exchanged traded funds (ETF) and exchanged-traded notes (ETN) have exploded in popularity over the last few years.

The popularity is well-founded too. For the first time ever individual investors have been given an easy way to invest directly into commodities through ETFs and ETNs.

These funds are normally focused on investing in a single specific commodity like gold or in a basket of commodities like agriculture commodities including wheat, corn, and soybeans.

They trade like regular stocks on all the major exchanges. So investors can buy and sell them very easily and quickly.

Best Commodity Investment #3: Mutual and Index Funds

These are closely related to the commodity investment ETFs and ETNs noted above, but they are slightly different.

They are similar to the ETFs and ETNs in that they mainly stick to a specific commodity, predetermined group of commodities, or an index of commodities.

Start Investment In Commodities Today

They are, however, normally structured mutual funds so they don’t trade like stocks. But they can usually be liquidated at their net asset value at the end of each day.

Best Commodity Investment #4: Managed Funds

Managed commodity funds usually consist of an experienced commodities broker or trader running a fund that individual investors can put their money into.

The commodities broker or trader then manages the money for a specified period of time and the losses and profits are distributed among the investors in the managed fund.

Much of the focus for most managed commodities funds is short-term trading. So investment returns will be volatile and will not be dependent on a bull or bear market in commodities prices.

As you can see, Contrarianinsights.com will give you all the  information on  on  how to invest commodities,  how to invest in commodities, how do i invest in commodities

These  investment in commodities however, are best suited for the individual investor. They are easy to buy and sell. They are liquid and can be sold like a stock during market hours or can be sold with a few hours or days of notice with commodity-focused mutual and managed funds. They can provide diversification across a number of different commodities too.

These are features and individual investor should have in their investments to ensure they can make a move when they want or need to make a move. And if you looking to figure out how do I invest in commodities, stick to these top  investing in commodities to both jump on the ongoing commodity bull market (especially during a pullback like the current one) and stay safe at the same time.

Good investing,

 

Andrew Mickey
Executive Editor, Contrarian Insights

 

Join Now

The Group of Big Investors in United States.

Your Email

Investment In Commodities Now

Like This?

Share This:

Facebook Twitter Share on Google+ Digg Reddit LinkedIn Pinterest StumbleUpon

Recent Post

How to Buy Commodity Stocks Online 2015 - Learn here it’s Safe to Investment in Commodity Market

The how to invest in commodities stock 2015 can correct any fluctuations that investors may have felt recently in their fortunes. The beginning of the year was on a shaky note with the direction of profits not very clear. However, with the months wearing on, the commodities market is once..... Read More...

Is Gold and Silver a Good Investment in 2015? Gold Coins Investment Best Idea for a Great Return

The is investing in gold a good idea right now is the hot conversation for small and big time investors alike. With the crash in real estate markets and the continued disfavor of bonds, gold is the only option which is fast emerging as the fail safe investment. Moreover, gold..... Read More...

Top 10 Best Stocks To Invest In Right Now in 2015, Learn Here How to Buy Stock Now

The top ten best stocks to invest in 2015 can help investors consolidate gains this year with a great margin. These are the stocks one’s would prefer to buy and hold onto for a long time. There are more winners here than losers which sped way past the rest..... Read More...

Best Investment Strategy for High Income Earners, Learn Here Investment Strategies for Buying Stocks

The investment strategies for high income earners are a few of the best special financial tips to help in wealth management. The top 2-3 per cent of the high income earners has a challenging task in holding onto their money and investment may be the only way out to avoid..... Read More...

How to Make Money in the Stock Market with Little Money for beginners, Future Wealth

The how to make money in the stock market with little money is a sure fire way to get out a less than perfect existence. It is a means other catapult in to luxury almost overnight as has been shown by many an investor in all times. Investing in the..... Read More...