The Unexposed Knowledge About Commodities

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==== ==== For more information about commodities in digitized formats, including software, please click this link. http://bit.ly/el7HuE ==== ====

Commodities as an asset class are quickly becoming popular! It is being said that the 21st century belongs to commodity trading. Just remember the early part of 2008, when crude oil prices skyrocketed from $60 per barrel to around $150 per barrel. Wheat, copper, silver, aluminum prices all hit a high during the same time. It seemed that commodity prices are going to hit an all time high. Now, commodities are going to experience a long period of high demand and low supply. This will propel their prices to all time high. Fundamentals behind the boom in the commodity market are strong. Countries like China, India, Braxil, Russia and others are developing fast. This will increase the demand for commodities in these fast developing economies. This high demand is going to make the prices in the commodity market to skyrocket. Then there is an overall increase in the global population, people are rapidly moving to cities in the developing world, this increases the demand for commodities all over the world. Copper, aluminum and other commodities will be in high demand. In other words, these strong fundamentals will continue for many decades in the 21st century. You need to ride this boom that is taking place in the commodity market. Now commodity investing can be done in many ways. This is unlike stocks. There are many different investment vehicles that you can use to invest in commodities. You can invest in companies that process commodities like copper, aluminum, uranium. You can even invest in energy companies and oil and natural gas companies. You can invest in commodity ETFs. You can buy precious metals ownership certificates. You can invest in Master Limited Partnerships. Last but not the least, you can invest in gold and oil futures. There are so many possibilities that you can use to invest in commodities. Master Limited Partnerships (MLPs) that invest in energy infrastructure like pipelines and storage facilities are a unique investment as they are traded publicly like a corporation but they offer the benefits of a partnership. Unlike Corporation that are taxed two times, MLPs are not taxed and they pass on their income to shareholders tax free. You will be only taxed on individual basis if you invest in an MLP. An MLP's primary responsibility is to pass on all the cash flow directly to shareholders, you can afford not to invest in MLPs. With the rise in the crude oil prices, the demand for nuclear power is on the rise. Price of uranium has gone from $10 in 1994 to more than $40. Uranium market is in an extended bull market for the last decade. You can profit from investing in companies that mine uranium ore. As more and more investors and traders flock towards commodity trading, exchanges that provide futures contracts, options and other derivatives to commodity traders have seen their stock prices rise! The Chicago Mercantile Exchange (CME), one of the largest commodity exchanges has seen


its stock price rise from $40 in 2003 IPO to almost $500 in 2006. This performance was even better than GOOGLE. With the global economy out of recession, this price is again going to shoot up. This is the best time to start commodity trading!

Mr. Ahmad Hassam has done Masters from Harvard. Learn Commodity Trading! Download this Ultimate Swing Trading Software that works for forex, stocks and futures FREE.

Article Source: http://EzineArticles.com/?expert=Ahmad_A_Hassam

==== ==== For more information about commodities in digitized formats, including software, please click this link. http://bit.ly/el7HuE ==== ====


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