Commodity investing

[ewilcox]

Hi

I was wondering what the different options are for investing in commodities for the average person. Is it a necessity to have a large capital base to gain exposure to a particular commodity? Also if you are investing for the medium/long term what would be the best investment products to look into?

Thanks in advance,

ew

 

[PeterTT]

ew ..
I am long term commodity bull and have been so for last 2 years. If you are looking to "trade" more actively then you will need to have either a spreadbet account or a direct futures account. I you want to run a more buy and forget strategy then you should look at shares. The obvious ones are base and precious metal shares .. MLW is a good general mining investment trust listed in London. If you want more exposure to "soft" commodities then you should look at warrants that track to CRB (basket of commodities). Good Luck

 

[perpetual profit]

Hi,I have some shares in starvest (SVE) which invests in other commodity companies..Oil shares seem dodgy,look what happened to cairn energy recently..

 

[-oo0(GoldTrader)]

Spectlation

I was wondering what the different options are for investing in commodities for the average person.

The average person does not play with commodities, they consume them.

Is it a necessity to have a large capital base to gain exposure to a particular commodity?

You may want to consider trading spreads. They take a relatively small capital base with tremendous returns on margin.

Also if you are investing for the medium/long term what would be the best investment products to look into?

Again spreads is your thing. Because you are hedged you can catch six to eight week swings.