As an investment option, commodities are for investors who're willing to take on risk.
Their prices can bounce around in short periods of time. They can soar as quickly as they can tank.
So why do the prices of commodities move around so much?
Let's take a closer look…
The rollercoaster ride of commodity prices
You don’t have to look far to find examples of extreme price vola... ››› more
In June, Petra Diamonds unearthed a massive blue diamond, weighing in at 122.5 carats, at its Cullinan mine near Pretoria.
When Petra Diamonds revealed the find, experts thought the diamond would bring in anything between $35 and $50 million.
Its sale price comes in well below these estimates.
Let's take a closer look at what's going on…
The blue diamond came from the infamous Cul... ››› more
For the sixth trading day in a row, the price of Brent crude oil has fallen. This takes the price down to a 17-month low.
In spite of conflict in the Middle East, the supply of crude oil appears ample. And with demand stagnating, the price is ebbing.
Let's take a closer look at what's going on and why this could be good news for South African motorists…
Crude oil hits a 17-month low
... ››› more
Supply and demand are perhaps the most important driving forces in economics.
These two factors play a very important role in the commodities market. Ultimately they determine the prices of commodities.
And they provide investors and traders a chance to make great profits too.
Let's take a closer look at the vital role of supply and demand in the commodities market…
The role of su... ››› more
The silver price has been on a long downtrend for the past three years. After hitting $50 an ounce three years ago, the precious metal is currently trading at around $19.
With the silver price languishing, many analysts believe it's only a matter of time before the silver price starts to climb.
Looking at many fundamental factors, there certainly appears a case for this. But there are signs ... ››› more
There are many investors and traders who think that it's only a matter of time until the silver price starts to put in a sustained recovery.
But, of course, with that there are many investors and traders who think that the silver price has further to fall.
So what are the chances of a fall in the price of silver looking like?
Let's take a closer look…
Silver on the chart
Over t... ››› more
Silver has had a rough few years. The price was trading up through $60 an ounce. Now it's languishing under $20 an ounce.
The answer resource traders want to know is, when is the price of silver going to recover?
Here are two reasons why the silver price is due a correction soon…
Reason for a silver price recovery #1: There are a huge number of short positions
If you compare silve... ››› more
Investing in gold is a great way to give your portfolio some protection against the unknown. It acts like a kind of financial insurance.
So why should your portfolio have exposure to gold? What are the best ways to invest in gold? And what are the costs of holding gold?
Read on to find out what you need to know…
Why you should include gold in your investment portfolio
In times of ... ››› more
Silver has underperformed for the past few years. To say the least, its performance is erratic.
Silver has the potential to make traders big profits. But given its recent track record, it can also disappoint traders.
So taking a look at the fundamentals, what are the reasons behind buying silver?
Let's take a closer look…
Reason to buy silver #1: China is running out of silver
... ››› more
Over the last couple of months, the oil price has been trending lower. This is in spite of various geopolitical events.
So why is the oil price not responding higher as you might expect? How can you benefit from a tumbling oil price? And are there any disadvantages to a lower oil price?
Let's take a closer look at what's going on with the oil price…
Why the oil price is easing
Jus... ››› more
The price of gold has continued to limp along. Over the past three months, the price is only 2% higher.
But there is a long-term gold indicator that looks like it's heading towards a buy signal. The last time this buy indicator went off, gold rose an astonishing 80% in just over two years.
Read on to uncover why gold could be preparing for another stellar rally…
The MACD and the gold... ››› more
Until last week, the ‘silver fix' all came down to backroom negotiations between a few dealers.
But now the way the price of silver is determined has gone electronic.
The new system sees participants enter electronic orders at a proposed starting price. The CME Group, who own the Chicago Mercantile Exchange, tracks the price.
So how does it work? And why the change?
Let's take a cl... ››› more
Mining has always been a risky business.
We all know how dangerous underground working conditions can be.
And every once in a while there's a big mining accident that turns the fate of a profitable mine into a deep money pit.
Village Main Reef had that with its Blyvoor mine two years ago after an earthquake collapsed a new mine portion - Making major parts of the mine inaccessible and cut... ››› more
When sentiment turns against an asset, the result is a plunging price. And when this happens, the price levels don't make economic sense.
But the fact is, the longer sentiment is negative, the longer prices stay down.
Yet, at some point, market forces will rule. And this is the case for this unloved, but essential, resource.
So let's take a look at why uranium looks set to fight back…
... ››› more
Over the month of July, the price of silver fell 3%. But if you look back to see what's happened in the past, August could be the month for silver to rally.
So why does this look like it's shaping up to be the month for silver?
Let's take a closer look…
Historically, August is a good month for the silver price
If you look at the silver price over the past five years, it’s always... ››› more
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