A large group of people, especially in India, equate commodities with precious metals like gold and silver or crude oil.
However, the commodities space offers much more. Think soyabean, grains, spices, pulses, etc.
Wondering how to invest in commodities? Let's find out...
Investors can invest in commodities via futures contracts or exchange traded products that directly track a commodity index.
Although these investments can be highly volatile and are generally carried out by experienced investors and traders.
Another way to gain exposure is to invest in companies that have commodity-related businesses.
For example, buying Hindalco shares gives exposure to non-ferrous industrial metals like aluminium and copper.
Investors can also invest in commodities via mutual funds. These are funds that invest in a portfolio of commodity-related companies.
For instance, an oil and gas fund would invest in equity shares of companies involved in energy exploration, refining, storage, and distribution.
Note that the returns of directly investing in commodities differ from investing in commodity related stocks. But so does the risk factor.
Commodity investing has its own advantages:
Alongside, commodity investing has its own risks:
Since you are interested in commodities, check out the top commodity stocks in India.
Meanwhile, also check out the below videos where India's #1 trader Vijay Bhambwani discusses whether you should invest in commodity stocks and whether commodity trading is for you.
Shadow Inventories and Commodity Trading.
Should You Invest in Commodity Stocks?
Feb 23, 2023
Should you trade gold or silver? Find out...
May 5, 2022
Metal prices are down sharply. Is the metals supercycle over? Find out...
Mar 14, 2022
Sugar sector is trending bullish amid the market correcting and most of the sugar stocks are trading at all-time high.
Jan 14, 2022
There's a new trading opportunity on the horizon. Get ready...
Nov 26, 2021
This is when you should trade crude oil and natural gas.
Aug 31, 2021
In this video, I'll show you why our energy blueprint is still intact.
Jun 14, 2021
A big event is coming up which will have an impact on our commodity trading.
Jun 24, 2022
In this video, I'll explain why the stock market is not going up when crude oil prices are falling.
Mar 25, 2022
In this video, I'll share my view on when you can expect to trade commodities normally again.
Mar 11, 2022
The index is trading around 24,800 level, just near the breakout of bullish or inverted head and shoulder pattern which is placed at 25,100-25,250 zone.
Dec 16, 2021
This is why I think 2022 is going to a great year for commodity trading.
Oct 28, 2021
A relatively unknown segment of the market is cautious on metals. Here's the secret sauce...
Jun 15, 2021
Should you be worried about shadow inventories while trading commodities? Find out...
Jun 18, 2019
Behavioural Technical Analysis, Copper trading, Commodities, hard assets, Base metals.