Over the years, commodities have become ever more popular. You can see this trend is the launch of several different commodity-backed exchange traded funds (ETFs). But before you jump in, you need to understand exactly what investing in commodities is all about and the risks involved. Read on to find out what you need to know...
How you can trade commodities
If you want to trade commodities, y... ››› more
When you invest in gold and other precious metals, you're investing in commodities. And investing in these metals is very similar to investing in other commodities like sugar, cocoa, coffee and wheat. But it's very different to investing in stocks, property or art. So what makes investing in commodities different from investing in financial investments? Let's take a closer look…
Investing in ... ››› more
Commodities trade on specialist commodity markets. The largest commodity market in the work is the Chicago Mercantile Board of Exchange. Here you'll find commodities ranging from gold to orange juice and oil to coffee trading. So how do commodity markets work? And what determines commodity prices? Let's take a closer look…
Commodity markets all come down to supply and demand
The buyers and s... ››› more
Commodities are ‘real' assets. Commodities include oil, coffee beans, copper and cotton. So is it a wise decision to have investments in commodities? If you're a trader, or you like to speculate on the commodity markets, then that's a different story. But when it comes down to your actual long-term investment portfolio, commodities are perhaps not the best thing to put your money into. Let's tak... ››› more
Platinum-backed exchange traded funds (ETFs) are sucking up vast quantities of platinum group metals (PGMs). One of the main drivers behind this was the launch of Absa's NewPlat last year. It's been very successful. Add to that the addition of two palladium-backed ETFs and palladium holdings are also rising. The demand for PGM-backed ETFs is adding to the unprecedented demand for these metals. Dem... ››› more
To gain exposure to commodities you have a number of different options. You can buy the physical commodity, such as gold coins and jewellery. You can invest in commodity-backed exchange traded funds (ETFs). Or you can invest in mining shares. Let's take a closer look at the benefits of investing in mining shares over investing in commodities specifically…
Mining share advantage #1: it’s mor... ››› more
Let's play the “What am I” game…
I'm a solid, silvery-white metallic element…
You can find me in many rooms of your house.
You'll find me in pots, pans, ovens, toasters, cell phones, tumble dryers, cars or even geysers.
And in some countries, I'm even a coin!
Not only am I found everywhere, but it looks like I am about to soar 26% in the next two years or
so, which is gre... ››› more
If you're looking for exposure to commodities in your portfolio, you can use exchange traded funds (ETFs). You can either invest in an index-based ETF or you can opt for a commodity-backed ETF. So what's the difference? And how can you invest in them? Let's take a closer look…
Commodities ETFs option one
Your first option in commodities ETFs is to buy an index-based ETF that invests in diffe... ››› more
When it comes to investing, you've probably heard the word ‘commodities' before. But do you know what commodities are? And where do commodities fit in in your investment portfolio? Read on to find out what you need to know about commodities…
What are commodities?
Commodities are ‘real’ assets. To put it another way, they are ‘real stuff’.
The most common commodity you’ll be fa... ››› more
By now the story about the tensions in the Ukraine is old news.
But what's changing is the level of tension between Russia and the western world. You see, Russia's decision to ignore the US and Europe and occupy Crimea has seen these world superpowers bumping heads. Just last week, U.S. Secretary of State John Kerry said Russia will be making a “grave mistake” if it doesn't halt provocation... ››› more
It's emerged that resource giant Glencore Xstrata sold its copper mine in Peru to a Chinese consortium for nearly $6 billion. The agreed price is at the high end of what analysts expected. The move by the Chinese companies demonstrates China's insatiable appetite for the world's resources. Let's take a closer look at the deal…
Master my s... ››› more
Today, the JSE booked another record close after hitting record highs yesterday. Good performances from mining shares helped push the local bourse higher. Fuelling mining shares higher were higher commodity prices. Let's take a closer look at what happened on the JSE today…
Mining shares performed well
The JSE entered the record books for the “second day in a row,” says Fin24. Shares in... ››› more
Governments are huge hoarders of gold and they continue to stock up. But where is all the gold coming from to satisfy this appetite? Demand for gold is strengthening. And after 2013 being awful for the yellow metal, its fortunes are changing this year. The gold price is up 10% so far this year. And with demand steadily growing and no abundant supplies, the price is going to rise…
Governments h... ››› more
On Sunday, the Crimea holds a vote on whether to join Russia. In a tribute to the former Soviet Union, there isn't actually an option to say no to Russia. The two choices that Crimeans have are basically: 1) Yes I want to join Russia or 2) I want the Crimean Government to decide for me. Since the Crimean Government also wants to join Russia, there really isn't much of a choice. And the place we'll... ››› more
After much criticism by industry giants, yesterday the government passed through changes to law affecting minerals and resources in South Africa. Amongst other things, the law will see the government get a 20% slice of any new energy projects. Let's take a closer look at the changes…
The ANC push through amended mineral and resources law
The ANC has “used its parliamentary majority to pus... ››› more
Gold has hit a four month high today. The yellow metal is benefitting from its safe haven status. Investors worried about the growing tensions between Ukraine and Russia have turned to gold. The gold price has risen more than 1% today. Let's take a closer look at what's going on with the yellow metal…
Global stocks markets are under pressure
The growing tensions between Russia and Ukraine h... ››› more
There is a metal that's getting ready to soar. This metal is 15 times rarer than platinum. In fact, this metal is 30 times rarer than gold. And no substitute can replace this metal because of its unique physical properties. This metal is palladium. And the price of palladium is looking set to double. Let's take a look at why… ]
Modern technology needs palladium to function
Palladium is a met... ››› more
So far in 2014, the price of gold has risen nicely. A good start after the horrendous time of it the yellow metal had last year. Have you ever thought about who holds gold? Of course governments are big holders, but there are some other hoarders of the yellow metals. And demand is continuing to soar from one country. Let's take a closer look at where the biggest stashes of gold in the world are…... ››› more
Earlier today, Impala Platinum (Impala) released its results for the six months to the end of December. The platinum producer, which is currently contending with crippling strike action, posted a decent set of numbers. The weaker rand helped to offset lower platinum prices. Let's take a closer look at what the results showed…
A weaker rand helped lift revenue
Implats’ revenue over the per... ››› more
February has been a good month for silver so far. Just in the past few weeks, the metal is 14% higher. With it trading around $21.80 an ounce, it looks like the rally is far from over. So what's pushing the price higher? And how can you profit from the rising silver price? Let's take a closer look at what's going on with silver…
There are three core reasons why silver is going to continue to r... ››› more
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