3. CommoditiesCommodities is a broad term for raw materials and produce; metals like silver, gold and copper, and crops like corn, soy beans and grains are all commodities. In the current uncertain economic environment, investing in commodities remains a viable option as they are supposed to diversify risk and generate positive returns. Experts feel a low correlation between commodities and equities makes commodities a good diversification option for investors. According to renowned investor Jim Rogers, before investing in commodities an investor must ask these three questions: First, what is the current level of world production? Second, what new supply sources are currently coming online? Third, are there potential supplies that are undergoing exploration? “We're seeing signs of bottoming in the global economy, and that should be supportive of commodity prices,” California-based Mihir Worah, who manages Pacific Investment Management Co.'s Commodity Real Return Strategy Fund, had said. The world of commodity investing has also opened new avenues with the introduction of exchange traded funds. ETFs. You can opt for schemes that invest in 'energy', 'agriculture' or 'mining' verticals.
Disclaimer: All information provided in this article is for informational purposes only.
Latest Business News
