Best way to invest in commodities?

[The Good Doctor]

What is the best way to invest in commodities? I am leaning toward owning some silver. But I was hoping to get some exposure to like the Jim Rogers index but I don't know how?

I looked at Peter Schiff's Euro Capital site. Anyone had any long term gains there? What have been your experiences with Euro Capital?

I am trying to look at gaining foreign exposure to those companies that will be using these commodities as well.

Thanks.

 

[danberkeley]

Rja, rji, rjn, rjz, hap

 

[The Good Doctor]

Right but they are pretty cheap right now. And there is no long term history on them. Have you bought them? These are the ETN's for The Rogers Indicies right? I thought you can lose out pretty big with these?

I guess I am not sure how ETN's work. They are exchange traded notes.

Would this be worthwhile to get into these?

Rja, rji, rjn, rjz, hap

 

[danberkeley]

Right but they are pretty cheap right now. And there is no long term history on them. Have you bought them? These are the ETN's for The Rogers Indicies right? I thought you can lose out pretty big with these?

I guess I am not sure how ETN's work. They are exchange traded notes.

Would this be worthwhile to get into these?

There is risk in everything. It depends on how much you can tolerate. There is also DBA.

 

[Matt Collins]

Commodities are not really an investment. Investing means that what you are putting your money into will produce something. Commodities is speculation which = gambling.

 

[danberkeley]

Commodities are not really an investment. Investing means that what you are putting your money into will produce something. Commodities is speculation which = gambling.

Thanks for the techincal correction. HAP is still considered an investment.

EDIT: I was being sarcastic.

"Commodities are not really an investment."

Well, is it or is it not?

"Investing means that what you are putting your money into will produce something."

Not in finance. See my post below.

"Commodities is speculation which = gambling."

False.

FROM: http://www.investorwords.com/975/commodity.html

commodity

Definition 1
A physical substance, such as food, grains, and metals, which is interchangeable with another product of the same type, and which investors buy or sell, usually through futures contracts. The price of the commodity is subject to supply and demand. Risk is actually the reason exchange trading of the basic agricultural products began. For example, a farmer risks the cost of producing a product ready for market at sometime in the future because he doesn't know what the selling price will be.

Definition 2
More generally, a product which trades on a commodity exchange; this would also include foreign currencies and financial instruments and indexes.

FROM: http://www.investorwords.com/4643/speculation.html

speculation

Definition
Taking large risks, especially with respect to trying to predict the future; gambling, in the hopes of making quick, large gains.

FROM: http://www.investorwords.com/2144/gamble.html

gamble

Definition
To engage in any activity in which money is put at risk for the purpose of making a profit, and which is characterized by some or most of the following (in approximately descending order of importance): little or no research has been conducted; the odds are unfavorable; the behavior is risk-seeking; an unsystematic approach is being taken; emotions such as greed and fear play a role; the activity is a discrete event or series of discrete events not done as part of a long-term plan; the activity is significantly motivated by entertainment or compulsion; ownership of something tangible is not involved; no net economic effect results.

 

[Josh_LA]

Commodities are not really an investment. Investing means that what you are putting your money into will produce something. Commodities is speculation which = gambling.

oh no Matt, NOT AGAIN!

 

[Josh_LA]

Thanks for the techincal correction. HAP is still considered an investment.

don't listen to his semantics, anything you buy that you expect to appreciate is an investment.

 

[danberkeley]

investment

Definition 1
--------------
In finance, the purchase of a financial product or other item of value with an expectation of favorable future returns. In general terms, investment means the use money in the hope of making more money.


Definition 2
----------------
In business, the purchase by a producer of a physical good, such as durable equipment or inventory, in the hope of improving future business.

This content can be found on the following page:
http://www.investorwords.com/2599/investment.html

 

[Josh_LA]

What is the best way to invest in commodities? I am leaning toward owning some silver. But I was hoping to get some exposure to like the Jim Rogers index but I don't know how?

I looked at Peter Schiff's Euro Capital site. Anyone had any long term gains there? What have been your experiences with Euro Capital?

I am trying to look at gaining foreign exposure to those companies that will be using these commodities as well.

Thanks.

Owning silver is easy, very easy

1. Know how much you're spending
2. Look for options, (preference for silver Eagles, simple bullions, or junk silver coins)
3. shop around, people here will tell you the best places, bulliondirect, apmex, ebay, your local shop.

 

[Josh_LA]

investment

Definition 1
--------------
In finance, the purchase of a financial product or other item of value with an expectation of favorable future returns. In general terms, investment means the use money in the hope of making more money.


Definition 2
----------------
In business, the purchase by a producer of a physical good, such as durable equipment or inventory, in the hope of improving future business.

This content can be found on the following page:
http://www.investorwords.com/2599/investment.html

exactly, so most people use it correctly.

 

[Primbs]

http://en.wikipedia.org/wiki/Silver_as_an_investment

You might want to look at other metals. Titanium, Platinum, Copper, Gold, Uranium and palladium. They all respond to differing factors. Some metals are closely tied to economic growth.

 

[ILUVRP]

I have always learned that a investment was " a return on your money and a return of your money " EVERYTHING else is speculation when you buy at a price and hope to sell at a higher price......

 

[theoakman]

Commodities are not really an investment. Investing means that what you are putting your money into will produce something. Commodities is speculation which = gambling.

anything can be an investment. If something is undervalued, you can make money on it. Likewise, if it's overvalued, you can lose money on it.

 

[Josh_LA]

anything can be an investment. If something is undervalued, you can make money on it. Likewise, if it's overvalued, you can lose money on it.

yeah, no kidding, some people still feel like they need to dictate their definition and usage.

 

[DFF]

Commodities are not really an investment. Investing means that what you are putting your money into will produce something. Commodities is speculation which = gambling.

Investing in stocks is gambling too. Stocks can go up and stocks can go down. As an investor, you speculate via technical anaylis, financial news, geopolitical news etc which direction they're headed.

The main difference between stocks and commodities is the degree of volatility.

Commodities can have wild swings and you can lose a lot or gain a lot in a short amount of time.

There is one certainty though which separates the two: commodities are things people need and will continue to need like meat, or will always perceive as precious, like gold.

 

[ILUVRP]

The main difference between stocks and commodities is the degree of volatility.

Commodities can have wild swings and you can lose a lot or gain a lot in a short amount of time.


The thing that makes commodities so wild is the margin rate at 3-10 %, meaning a 3-10% move in the commodity and you are wiped out.....

One of the biggest reasons for the great depression was being able to buy stocks with 10% margin, if you stock went down 10% and you couldn't make maintenance requirements you were sold out. Selling lead to selling, also no down tick rule for shorting...


Commodities will never go to zero (worldcom-enron we all know the rest), IF stocks were at 10 % margin the Dow would be at 3000 now......

Trade commodities with 50-100% cash and they would be about the same as stocks....Cost you a ton of money.....or trade mini contracts in Chicago

 

[ILUVRP]

The Chicago Board Of Trade has a mini gold contract which is 33.2 troy oz. Also a mini silver contract which is 1000 oz.....

It would be a easy way to buy gold ond silver at wholesale......Just take delivery

 

[tmosley]

Thanks for the techincal correction. HAP is still considered an investment.

EDIT: I was being sarcastic.

"Commodities are not really an investment."

Well, is it or is it not?

"Investing means that what you are putting your money into will produce something."

Not in finance. See my post below.

"Commodities is speculation which = gambling."

False.

FROM: http://www.investorwords.com/975/commodity.html



FROM: http://www.investorwords.com/4643/speculation.html



FROM: http://www.investorwords.com/2144/gamble.html

Heh, where's TruthWarrior when you need him, eh?

Thanks for finally putting that stupid semantic argument to bed.