Oct
29
Alan F
How can I invest in commodities beside buying stocks of say Exxon or Shell. Say I believe bushel of corn or barrel of oil are going to rise? How do I invest? I do not want to buy the commodities per se, but just invest and sell it on paper. NOT INVESTING IN STOCKS, MUTUAL FUNDS etc, ideas? Where can I go thanks.
How can I invest in commodities beside buying stocks of say Exxon or Shell. Say I believe bushel of corn or barrel of oil are going to rise? How do I invest? I do not want to buy the commodities per se, but just invest and sell it on paper. NOT INVESTING IN STOCKS, MUTUAL FUNDS etc, ideas? Where can I go thanks.
Oct
28
Commodity Investing For Your Portfolio
Filed Under Non Fiction | Leave a Comment
Randy Zakowski
Even though throughout the last thirty or so years, the Commodity Research Bureau (CRB) has been in a downtrend and the S&P 500 as been in an uptrend many people continue to invest in commodities. Before we look at why and how they are becoming successful investors, let us look at what the CRB is. The Commodity Research Bureau is something similar to the Dow Jones. It mathematically combines the prices of commodities to determine just how the commodities are moving. The equation is performed by averaging out the prices of wheat, gold, coffee, oil, and other such items.
One of the reasons that investors are doing so well, is that when you look at the indices you are not getting the whole picture. When you are looking at the general trends, you are not seeing the daily price movements in detail. This is what many investors use when they are looking to trade for profits. What matters at the end of the day, is how much you paid and how much you got when selling, not the prices that you see.
Trading strategies throughout the years have incorporated the role of commodities. Stock prices and commodities often move in very different directions. Therefore, many people incorporate commodities into a large part of hedging strategies.
Another reason might be just how investors view the different strategies and how the market should and does work. For example, some people believe with historical and substantial support, that if you are following a crowd you cannot hope to make money. People believe that before you can profit in investing, you must be doing exactly the opposite of what others are doing. Data proves that this is good train of thought and many people are taking advantage of it.
Furthermore, when thinking in terms of a hedging strategy, a smart investor will have a well-diversified portfolio. Which means they will have a little bit of everything within their portfolio, this includes commodities, cash, bonds, and stocks. Thanks to inflation, these things work in the exact opposite of each other. As an example, if bond are moving down, commodities are moving up at the same time. This helps in hedging strategies and giving you control over profits and risks.
Over the last few yeas, commodities have started to trend up. This has been observed by many investors causing a rise in commodities investments. Oil and gold are perfect examples of this observation. About thirty years ago, the gold prices peaked, after which it started on a steady downfall and continued this way until about 2003. Since then, it has been moving up and has increased by about forty percent.
Some people will tell you that the gold price will continue to grow as time moves on. This may be true a true speculation, however, you can never really tell. When it comes to inflation and the views that the Federal Reserve have taken, it could very possible be a true speculation.
However, one thing you can rely upon is other commodities such as coffee, gold, oil, and wheat. The world will continue to use them regularly. At the same time, some of these commodities cannot be replenished, which means that the more people use them, the less availability there will be. This includes oil and gold. Neither can be recovered.
As the demand continues to rise for both oil and gold, we will find that the supplies dwindle fast and leaving us to worry about high prices as investors and consumers. There are some other forms of commodity investments such as Exchange Traded Funds (ETF’s) and mutual funds. What is great about these kinds of commodities, is that they generally tend to trend in the same directions as stocks and bonds, instead of the opposite way, as with some other commodities.
Even though throughout the last thirty or so years, the Commodity Research Bureau (CRB) has been in a downtrend and the S&P 500 as been in an uptrend many people continue to invest in commodities. Before we look at why and how they are becoming successful investors, let us look at what the CRB is. The Commodity Research Bureau is something similar to the Dow Jones. It mathematically combines the prices of commodities to determine just how the commodities are moving. The equation is performed by averaging out the prices of wheat, gold, coffee, oil, and other such items.
One of the reasons that investors are doing so well, is that when you look at the indices you are not getting the whole picture. When you are looking at the general trends, you are not seeing the daily price movements in detail. This is what many investors use when they are looking to trade for profits. What matters at the end of the day, is how much you paid and how much you got when selling, not the prices that you see.
Trading strategies throughout the years have incorporated the role of commodities. Stock prices and commodities often move in very different directions. Therefore, many people incorporate commodities into a large part of hedging strategies.
Another reason might be just how investors view the different strategies and how the market should and does work. For example, some people believe with historical and substantial support, that if you are following a crowd you cannot hope to make money. People believe that before you can profit in investing, you must be doing exactly the opposite of what others are doing. Data proves that this is good train of thought and many people are taking advantage of it.
Furthermore, when thinking in terms of a hedging strategy, a smart investor will have a well-diversified portfolio. Which means they will have a little bit of everything within their portfolio, this includes commodities, cash, bonds, and stocks. Thanks to inflation, these things work in the exact opposite of each other. As an example, if bond are moving down, commodities are moving up at the same time. This helps in hedging strategies and giving you control over profits and risks.
Over the last few yeas, commodities have started to trend up. This has been observed by many investors causing a rise in commodities investments. Oil and gold are perfect examples of this observation. About thirty years ago, the gold prices peaked, after which it started on a steady downfall and continued this way until about 2003. Since then, it has been moving up and has increased by about forty percent.
Some people will tell you that the gold price will continue to grow as time moves on. This may be true a true speculation, however, you can never really tell. When it comes to inflation and the views that the Federal Reserve have taken, it could very possible be a true speculation.
However, one thing you can rely upon is other commodities such as coffee, gold, oil, and wheat. The world will continue to use them regularly. At the same time, some of these commodities cannot be replenished, which means that the more people use them, the less availability there will be. This includes oil and gold. Neither can be recovered.
As the demand continues to rise for both oil and gold, we will find that the supplies dwindle fast and leaving us to worry about high prices as investors and consumers. There are some other forms of commodity investments such as Exchange Traded Funds (ETF’s) and mutual funds. What is great about these kinds of commodities, is that they generally tend to trend in the same directions as stocks and bonds, instead of the opposite way, as with some other commodities.
Oct
28
pattyc75
Yiwu is China’s largest commodities trading city and has a massive permanent fair. A large proportion of the world’s products come out of companies based in Yiwu
Oct
27
04/03/08 S&P, Emini & Futures Recommendations
Filed Under Howto | 12 Comments
futuresanalysts
http://www.livewithoscar.com
Oct
26
Assuming dollar will devalue & commodities will inc in value will investing in commodity rich etf’s do well?
Filed Under Investing | 2 Comments
ifollowjimrogers
foreign commodity rich etfs like canada and brazil and australia might do well in this sort of enviroment or will a currency devalueation wipe out all gains made in us traded foreign etfS
foreign commodity rich etfs like canada and brazil and australia might do well in this sort of enviroment or will a currency devalueation wipe out all gains made in us traded foreign etfS
Oct
26
Ok Yanks, listen up. Name two reasons why investing in Canadian commodity stocks is a good idea for you?
Filed Under Investing | 4 Comments
Huguenot
If you have more, fine, if you have detractions, name them.
If you can give similar reasons for other markets please do so.
If you have more, fine, if you have detractions, name them.
If you can give similar reasons for other markets please do so.
Oct
25
Commodities? Here’s a novice?
Filed Under Investing | 2 Comments
Loraine
What does it mean to invest in commodities. I understand that Joe Lieberman would like to prevent people from investing in commodities. Do you know of a good website “for dummies” that would teach me about investments/commodities?
What does it mean to invest in commodities. I understand that Joe Lieberman would like to prevent people from investing in commodities. Do you know of a good website “for dummies” that would teach me about investments/commodities?
Oct
25
Oz Minerals Still Upbeat
Filed Under Investing | Leave a Comment
Australasian Investment Review
OZ Minerals Ltd, the world’s second largest zinc producer, went on the hard sell yesterday to try and convince investors that the commodity price crunch would not take too greater toll on the company and its future prospects.
CEO, Andrew Michelmore used the release of the company’s third quarter production and exploration report to outline in some depth those steps to cut the short term exposure to the weak prospects for zinc and boost copper.
He held a tele-conference for analysts and the media and sold the line that Oz Minerals remained well placed and there was still solid demand for the company’s products.
It was a notable attempt to try to counter the negative feeling about commodities, given the global sell-off and the comments by Rio Tinto last week which painted a picture of a cooling China which wouldn’t see any bounce in demand until next year.
“There is still demand growth. We have not witnessed a decline for our products,” OZ Minerals chief executive Andrew Michelmore told analysts in a conference call yesterday.
The sell must have worked because the shares rose 9.5c yesterday to $1.16, a rise of nearly 9% when the market was up 3.9%.
“All of our customers still want and need our products and no one is cancelling contracts,”he said.
OZ Minerals was formed this year through the merger of gold miner Oxiana and zinc producer Zinifex.
The company also produces copper, nickel, gold and lead. It wasn’t the best of times for two miners to get married.
The merger was consummated as of July 1, just as the global picture for commodities, especially oil and metals, was starting to sour. Zinc, lead, nickel and copper had been weakening gradually from before then, but the negative sentiment emerged from mid-year onwards and hasn’t gone away.
Zinc has lost a third of its value since July, nickel is down 50% (after a big fall in the year to July) and copper is off 43%.
The company is the world’s second-largest zinc miner and said it produced 174,158 tonnes of zinc in the September quarter and also repeated plans to slash zinc output from its Australian mine by up to 40% in 2009.
Oz Minerals said that next year’s zinc output at its Golden Grove mine in Western Australia would be between 80,000-85,000 tonnes, down 35-40% from an earlier plans. As announced six weeks ago, the company will instead lift copper output at the mine by 14,000 tonnes to between 35,000-40,000 tonnes for 2009.Zinc production from Golden Grove for the quarter to September fell 33.5% to 23,778 tonnes, while copper output more than doubled to 6,692 tonnes.
That’s because the company expects underlying copper demand to hold at current levels, with total global stocks still relatively low. Lead supply remains the tightest of all metals, underpinned by strong China.
Oz said it is on track to meet guidance for full-year gold and copper output in Laos.
Copper output at its Sepon operation in Laos reached a record 17,546 tonnes in the quarter, despite the impact of heavy rains, while gold production at Sepon for the quarter was 22,190 ounces.
The firm said construction at the Prominent Hill copper mine in South Australia was 88% complete and the processing plant remained on track for commissioning in the fourth quarter.
Elsewhere, copper production from the company’s Sepon operation in Laos climbed 8.7% to 17,546 tonnes.
OZ Minerals said output from the Avebury nickel mine in Tasmania, which has just come on stream, was 26% above budget at 4,796 tonnes of nickel in concentrate.
Zinc output during the three months from the old Zinifex Century mine in Queensland dropped 3% on the previous corresponding quarter to 129,241 tonnes.
And the company is considering whether it should cut production or defer a life-extending waste rock removal program at Century.
It has also made clear that one of its key growth projects, the proposed $500 million development of the Dugald River project, also in Queensland, will not proceed until metal prices recover.
Oz Minerals believes overall that the strength of its balance sheet will get it through by completing all of its committed projects.
These include the Prominent Hill copper/gold in South Australia, Martabe gold in Indonesia, the copper expansion in Sepon in Laos, and the Century waste rock removal program.
IMPORTANT: AIR reports about financial markets and investment products in the widest sense possible. The AIR website and all its contents is prepared for general information only, and as such, the specific needs, investment objectives or financial situation of any particular user have not been taken into consideration. Individuals should therefore talk with their financial planner or advisor before making any investment decisions.
OZ Minerals Ltd, the world’s second largest zinc producer, went on the hard sell yesterday to try and convince investors that the commodity price crunch would not take too greater toll on the company and its future prospects.
CEO, Andrew Michelmore used the release of the company’s third quarter production and exploration report to outline in some depth those steps to cut the short term exposure to the weak prospects for zinc and boost copper.
He held a tele-conference for analysts and the media and sold the line that Oz Minerals remained well placed and there was still solid demand for the company’s products.
It was a notable attempt to try to counter the negative feeling about commodities, given the global sell-off and the comments by Rio Tinto last week which painted a picture of a cooling China which wouldn’t see any bounce in demand until next year.
“There is still demand growth. We have not witnessed a decline for our products,” OZ Minerals chief executive Andrew Michelmore told analysts in a conference call yesterday.
The sell must have worked because the shares rose 9.5c yesterday to $1.16, a rise of nearly 9% when the market was up 3.9%.
“All of our customers still want and need our products and no one is cancelling contracts,”he said.
OZ Minerals was formed this year through the merger of gold miner Oxiana and zinc producer Zinifex.
The company also produces copper, nickel, gold and lead. It wasn’t the best of times for two miners to get married.
The merger was consummated as of July 1, just as the global picture for commodities, especially oil and metals, was starting to sour. Zinc, lead, nickel and copper had been weakening gradually from before then, but the negative sentiment emerged from mid-year onwards and hasn’t gone away.
Zinc has lost a third of its value since July, nickel is down 50% (after a big fall in the year to July) and copper is off 43%.
The company is the world’s second-largest zinc miner and said it produced 174,158 tonnes of zinc in the September quarter and also repeated plans to slash zinc output from its Australian mine by up to 40% in 2009.
Oz Minerals said that next year’s zinc output at its Golden Grove mine in Western Australia would be between 80,000-85,000 tonnes, down 35-40% from an earlier plans. As announced six weeks ago, the company will instead lift copper output at the mine by 14,000 tonnes to between 35,000-40,000 tonnes for 2009.Zinc production from Golden Grove for the quarter to September fell 33.5% to 23,778 tonnes, while copper output more than doubled to 6,692 tonnes.
That’s because the company expects underlying copper demand to hold at current levels, with total global stocks still relatively low. Lead supply remains the tightest of all metals, underpinned by strong China.
Oz said it is on track to meet guidance for full-year gold and copper output in Laos.
Copper output at its Sepon operation in Laos reached a record 17,546 tonnes in the quarter, despite the impact of heavy rains, while gold production at Sepon for the quarter was 22,190 ounces.
The firm said construction at the Prominent Hill copper mine in South Australia was 88% complete and the processing plant remained on track for commissioning in the fourth quarter.
Elsewhere, copper production from the company’s Sepon operation in Laos climbed 8.7% to 17,546 tonnes.
OZ Minerals said output from the Avebury nickel mine in Tasmania, which has just come on stream, was 26% above budget at 4,796 tonnes of nickel in concentrate.
Zinc output during the three months from the old Zinifex Century mine in Queensland dropped 3% on the previous corresponding quarter to 129,241 tonnes.
And the company is considering whether it should cut production or defer a life-extending waste rock removal program at Century.
It has also made clear that one of its key growth projects, the proposed $500 million development of the Dugald River project, also in Queensland, will not proceed until metal prices recover.
Oz Minerals believes overall that the strength of its balance sheet will get it through by completing all of its committed projects.
These include the Prominent Hill copper/gold in South Australia, Martabe gold in Indonesia, the copper expansion in Sepon in Laos, and the Century waste rock removal program.
IMPORTANT: AIR reports about financial markets and investment products in the widest sense possible. The AIR website and all its contents is prepared for general information only, and as such, the specific needs, investment objectives or financial situation of any particular user have not been taken into consideration. Individuals should therefore talk with their financial planner or advisor before making any investment decisions.
Oct
25
jasworld123
Small tip for you to start small business in China. You can do it?
Yiwu City is a China’s largest commodities trading city and has a massive permanent fair. Is located 60 miles south of the city of Hangzhou - the capital of Zhejiang Province.
A large proportion of the world’s products come out of companies based in Yiwu
Oct
25
If You are Interested in Commodity Investing then Try these Tips
Filed Under Finance | Leave a Comment
Mark Plummer
If you’ve heard of commodities trading, you might be interested in knowing more about it. Commodities are products of commerce that are traded in commodity markets. These are materials such as financial investments, foreign currencies, agricultural products, metals and petroleum. When commodities markets began, they were used as agricultural trade platforms for local communities, utilized for agricultural products. Today, commodity markets have gone global, with country barriers broken down via technological advancements. Globalization and industrialization have meant that these goods have also been industrialized and the world has become its own trading center.
When you trade commodities, you must follow certain rules. First, trading is done only for products that are standard. Second, commodity transactions are done through something called “futures contracts.” With futures contracts, commodities are actually bought or sold on a future date, not the present date. However, the commodity’s selling price is agreed upon immediately when the contract is made. Therefore, even though the commodity is sold at a future date, the price itself is already fixed when the contract is made.
“Futures contracts” aren’t the only type of commodities contracts. Spot contracts are put in place so that commodities get transferred when a contract is made instead of at a later date. You use a spot contract to exercise future contract after a period of time has gone by. Some types of commodities investing include commodity food market, commodity fund investing, and commodity petroleum.
When commodities investing started, trading was done in just a few sectors. In addition, commodities were restricted to those used in regular, everyday life. Presently, anyone who wants to engage in commodities trading can.
If you decide you want to invest in commodities, you should know that one of their advantages is reduced risk. Commodities investment can help you even out losses that might occur in other areas you’ve invested in. Commodities can offer less risk because when you deal with commodities, you invest in a number of items. Because you are using futures contracts, you can also more easily ensure that the risks you take are much lower than they might be, so that you can reduce or even eliminate risk.
If you want to monitor a particular commodity’s performance, you can do so pretty easily. This is because in general, a particular commodity will perform well when other areas such as the stock market are not doing as well. By contrast, when the stock market is doing well, the commodities market might be doing more poorly. This makes it much easier to predict what commodity prices will be and to foresee market changes. However, even though this is a basic rule of thumb, it still should not be used as a means to actually predict true performance in any market sector, including the stock market, commodities market, et cetera.
If you’re interested in learning more about trading commodities, there are commodity-trading advisors who can help you. These are individuals or firms who can help you decide what your position should be in the commodity market, either long or short. They can also tell you when it’s best to liquidate your position. In addition, they can help you see if your goals will match with their particular trading philosophies and strategies.
For the best commodity-trading advisor, first figure out what your own goals and objectives are. Then, choose an advisor that matches what you want as closely as possible. Communications these days are easy, and you can keep in touch with your advisor by fax, pager, phone, or e-mail. In addition, if you don’t want to trade in commodities yourself, you can still invest in commodities trading by utilizing a variety of investment funds that do just this with their portfolios.
If you’ve heard of commodities trading, you might be interested in knowing more about it. Commodities are products of commerce that are traded in commodity markets. These are materials such as financial investments, foreign currencies, agricultural products, metals and petroleum. When commodities markets began, they were used as agricultural trade platforms for local communities, utilized for agricultural products. Today, commodity markets have gone global, with country barriers broken down via technological advancements. Globalization and industrialization have meant that these goods have also been industrialized and the world has become its own trading center.
When you trade commodities, you must follow certain rules. First, trading is done only for products that are standard. Second, commodity transactions are done through something called “futures contracts.” With futures contracts, commodities are actually bought or sold on a future date, not the present date. However, the commodity’s selling price is agreed upon immediately when the contract is made. Therefore, even though the commodity is sold at a future date, the price itself is already fixed when the contract is made.
“Futures contracts” aren’t the only type of commodities contracts. Spot contracts are put in place so that commodities get transferred when a contract is made instead of at a later date. You use a spot contract to exercise future contract after a period of time has gone by. Some types of commodities investing include commodity food market, commodity fund investing, and commodity petroleum.
When commodities investing started, trading was done in just a few sectors. In addition, commodities were restricted to those used in regular, everyday life. Presently, anyone who wants to engage in commodities trading can.
If you decide you want to invest in commodities, you should know that one of their advantages is reduced risk. Commodities investment can help you even out losses that might occur in other areas you’ve invested in. Commodities can offer less risk because when you deal with commodities, you invest in a number of items. Because you are using futures contracts, you can also more easily ensure that the risks you take are much lower than they might be, so that you can reduce or even eliminate risk.
If you want to monitor a particular commodity’s performance, you can do so pretty easily. This is because in general, a particular commodity will perform well when other areas such as the stock market are not doing as well. By contrast, when the stock market is doing well, the commodities market might be doing more poorly. This makes it much easier to predict what commodity prices will be and to foresee market changes. However, even though this is a basic rule of thumb, it still should not be used as a means to actually predict true performance in any market sector, including the stock market, commodities market, et cetera.
If you’re interested in learning more about trading commodities, there are commodity-trading advisors who can help you. These are individuals or firms who can help you decide what your position should be in the commodity market, either long or short. They can also tell you when it’s best to liquidate your position. In addition, they can help you see if your goals will match with their particular trading philosophies and strategies.
For the best commodity-trading advisor, first figure out what your own goals and objectives are. Then, choose an advisor that matches what you want as closely as possible. Communications these days are easy, and you can keep in touch with your advisor by fax, pager, phone, or e-mail. In addition, if you don’t want to trade in commodities yourself, you can still invest in commodities trading by utilizing a variety of investment funds that do just this with their portfolios.