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Who Is Investing in Commodities?
from: Caterina ChristakosThe easiest answer for this question is: anyone who does not mind being in a riskier market. In fact, the commodities market is reputed to be so volatile that fortunes can be made or lost in a matter of minutes or hours, if you don't know what you are doing. To get a better understanding of investing in the commodities market, let us take a look at some of the basics.
What is a commodity?
A commodity is anything that can be bought or sold. Examples of a commodity can include oil, gold, oranges and currency. When you invest in commodities, you are basically betting on what the market will do. You will bet that the price of oranges will rise or that the value of the dollar will fall.
Investment strategies in commodities
Most financial experts do not recommend investing anything in the commodities market that you can not afford to lose. It is not the investment type for someone who wishes for a safe investment for their retirement account, unless you put your money into a managed account.
However, if you do not mind higher risk in return for the greater chance of higher returns, commodities might be a good option. Commodities are a great way to use a portion of your portfolio in higher risk/higher return investment, but should never be used as a major segment of your portfolio.
Safe investing in commodities
If you really want to take your turn at commodities investment, but want to minimize your risk, take a look at commodities funds. Because these funds include a mixture of different commodities, the risk may be minimized by the very nature of the portfolio.
If it is riskier, why would anyone invest in commodities?
The return, when someone wins in the market, can be extremely high. There have been a number of millionaires made through commodities trading and will do so again in the future.
In addition, it has long been understood that the commodities market is a great hedge against inflation. When inflation unexpectedly hits, the commodities funds tend to do a lot better.
Finally, commodities are always in demand. Gold, oil and currency will always have a market because we need them. They will never become outdated and the demand will never disappear.
Investing in commodities may be the perfect investment for anyone who doesn't mind using a small portion of their portfolio in higher risk activities in order to achieve a higher reward. If you do not have the time to follow markets and industries on a day to day or hour to hour basis, checking out the commodities funds are the next best thing.
Caterina Christakos is an experienced investor and instructor with World Capital Institute. Ever imagined an exciting career as a stock or commodities broker. Make the dream a reality here: http://www.worldcapitalinstitute.com
Article Source: http://EzineArticles.com/?expert=Caterina_Christakos
Commodity Exchange Malaysia News
VEGOILS-Palm up on short-covering; firm ringgit eyed - Reuters
 Malaysia Star | VEGOILS-Palm up on short-covering; firm ringgit eyed Reuters ... their shorts ahead of the long weekend," said a trader with a foreign commodities brokerage in Kuala Lumpur. Benchmark April palm oil futures on the Bursa Malaysia Derivatives Exchange ended up 1 percent to close at 3085 ringgit ($1025) per tonne. Palm oil touches six-week low on strong ringgit Analysts affirm urgent need to resolve delay in palm oil quotas RI, Pakistan to ink trade pact today |
VEGOILS-Palm oil hits new six-week low on strong ringgit - Reuters
VEGOILS-Palm oil hits new six-week low on strong ringgit Reuters ... these two days the market will not be too active," said a trader with a foreign commodities brokerage in Kuala Lumpur. Benchmark April palm oil futures on the Bursa Malaysia Derivatives Exchange lost 0.7 percent to 3063 ringgit ($1007) per tonne. |
Singapore Exchange to Start Pepper Futures Trading Next Week - Bloomberg
 Hindu Business Line | Singapore Exchange to Start Pepper Futures Trading Next Week Bloomberg The Singapore Mercantile Exchange will start trading black pepper futures contracts from Feb. 10 as it seeks to develop a platform for the commodity grown mostly in Asia, the bourse said in a statement today. The contracts will be for pepper that ... Singapore to launch black pepper futures contract SMX launching black pepper futures contract to tap Indian market World's first global Black Pepper futures contract to launch on SMX |
CORRECT(1/31): Bursa Malaysia Readies New Clearing System For 1Q Launch - Fox Business
CORRECT(1/31): Bursa Malaysia Readies New Clearing System For 1Q Launch Fox Business -(Dow Jones)- Bursa Malaysia Bhd (1818.KU) is preparing to launch new trade-clearing technology for its derivatives markets that will enable the Kuala Lumpur exchange to offer a broader range of contracts, according to a senior executive. |
Cabinet to discuss RCI on Sabah's secret voters - Free Malaysia Today
Cabinet to discuss RCI on Sabah's secret voters Free Malaysia Today ... Malaysian citizenship and taking part in elections during its meeting on Wednesday. Plantation Industries and Commodities Minister Bernard Dompok said Prime Minister Najib Tun Razak had promised him this during a recent meeting in Putrajaya. |