Keen investors often imagine the ringing of cash registers when they hear the word “commodity”. In the financial world, a commodity is much more than just an item to be acquired or used. A commodity has an inherent value and is a hot-ticket trading entity. Learn here about buying gold and other commodities and the investment forms available like stocks, mutual funds and exchange-traded funds. There are both risks and benefits in commodity markets, but you’ll see that commodities investing can be a major role of diversifying or rebalancing any portfolio. The New Savvy addresses their histories and pricing, and will enable you to understand these investment opportunities more clearly.
Gold, oil, coal, coffee, wheat. We covet every one of them. We like to stay warm in the winter with proper heating, we beautify ourselves with gold. Wheat is a staple of many diets around the world. Women purchase any and all of these precious items in their role as consumers. But what about investing in commodities?
The New Savvy commodities investing guide and tips for women may pique your interest in this fascinating market. A prudent woman’s investment objectives will demand a certain safety net within her portfolio. Commodities can be the basis of that net. Gold, for example, is an ultra-safe purchase, a sort of a safeguard against a potential market crash. It retains its worth in all cultural, political and business environments. When the world goes topsy-turvy during bad economic times, gold climbs in value.
Commodities are a natural addition when it comes to diversifying or rebalancing your portfolio. Many women likely already own commodities, but we don’t think about them as such. Mutual funds usually include stocks from energy companies (think Shell or BP). The value of Starbucks shares is indirectly linked to the price of the beans. Some investors prefer to get back to basics when investing in commodities, and they purchase gold bullion or even coins which their stockbroker stows away in a secure vault.
Any savvy investor who is looking to actively increase the value of their commodities purchase. Storing away the glistening yellow stuff under the mattress won’t compound the return. The tips in this guide will help you discover the tricks, like scouting for successful dividend-yielding companies within mutual funds or exchange-traded funds (ETFs), or ensuring that your commodities’ returns are auto-reinvested.
If you’re looking for an adrenaline high with some risk in your investment activity, read up on speculation. Commodities like grain or cattle – whose quality is dependent on climate conditions – fluctuate in value based on the outcome of the weatherman’s report for their growing season. Buying these when there’s a glut on the market and prices are low can be an interesting speculative activity.
Remember that commodities investing can play a positive role in meeting your overall investment goals. The New Savvy illuminates how best to consider what types and vehicles are available, how to find the one suitable for your own risk tolerance.