The story is nothing new, it has been known for quite some time that the U.S. may hold the largest oil reserve ever. That reserve, dubbed the Green River Formation, stretches across western states Colorado, Utah, and Wyoming, and is sitting on mostly federal lands, making it much easier for the government to drill for the resource. So how big is the biggest reserve ever? It is estimated that this area contains a massive three trillion barrels of oil, half of which is currently recoverable. To give you an idea for how significant that number actually is, three trillion is approximately equivalent to the rest of the world’s proven reserves combined. But if this discovery is old news, why isn’t anyone talking about it? [see also 25 Things Every Financial Advisor Should Know About Commodities].
When it comes time to add coffee exposure to your portfolio, investors may be left with questions as to the best ways to achieve that goal. Trading coffee can be a very lucrative opportunity, as these futures offer strong intraday liquidity that comes attached with enticing volatility. But be warned, trading soft commodities like coffee is not for the faint of heart. Positions can be devastated on a moment’s notice and can create a major headache for traders. Those looking to wade into these waters should always have a profit objective in mind as well as a disciplined entrance and exit strategy. For those looking to make a play on coffee contracts, we detail how to trade futures on this soft commodity [see also The Ten Commandments of Commodity Investing].
We’ve all heard of TIP, right? If you’re a long term commodities investor that buys on the dips, you might use this highly liquid ETF as the short term place for your dry powder. In theory, it protects from inflation, since the ETF holds only Treasury Inflation-Protected Securities (TIPS). In practice, the return on these TIPS is based on the movement of the CPI over time. Is this a problem? Depends whom you ask.
While most people think of coffee as their go-to beverage for the morning or a lazy afternoon, its prevalence as a financial instrument has soared in recent years. As a member of the softs family, coffee futures offer heavy volatility and strong liquidity (no pun intended) for those looking to make a trade. As a crop, coffee production is dominated by Brazil, followed by Vietnam, Colombia, and a slew of other emerging markets, though it is the developed markets who hog the consumption. As coffee’s popularity continues to grow, traders looking to make a play will need to keep an eye on a number of factors that drive the price of this hard asset [see also Warning: Ignore Bill Gross’ Hard Money Prediction At Your Own Risk].
Keeping track of the movements of coffee futures can be a tall ordeal. As a soft commodity, coffee is well known for its volatility that sucks a number of traders in. While constantly monitoring blogs and market movements is a useful technique, utilizing the power of Twitter can also be powerful tool in your investing arsenal. Though its professional benefits are often overlooked, following the right people on Twitter can give you up to the minute information on how coffee is behaving and any trends the commodity is exhibiting. Below, we outline seven must-follow coffee Tweeple to ensure you have the best information at your fingertips [see also Warning: Ignore Bill Gross’ Hard Money Prediction At Your Own Risk].
As if UNG and natural gas hadn’t already made a splash with their 15% performance last week, the fossil fuel was at it again today. Natural gas futures jumped by about 7.3% on the day, while UNG gained around 6.6%, much to the delight of a number of investors. After slumping for longer than anyone cares to remember, it seems like natural gas is fighting its way to higher prices, however volatile that path may be. Last week’s gains were due to lower stockpiles than expected, but today’s massive jump comes for an entirely different reason [see also 25 Ways To Invest In Natural Gas].
When most people think about coffee, their morning caffeine fix comes to mind, but this commodity also has a large presence in the financial world. As a soft commodity, coffee is a popular trading instrument, as it features strong liquidity and volatile daily movements. The majority of the world’s coffee supply comes from Brazil, though other nations like Vietnam and Colombia also have a large output. From a consumption standpoint, the list is dominated by developed markets like Finland, Norway, and Iceland (on a per capita basis) with the U.S. not making an appearance until number 26 on the list. For those looking to stay up to date on coffee futures and the commodity’s overall environment, we outline five blogs to help give you a leg up on this hard asset [see also Invest Like Jim Rogers With These Three Agriculture Stocks].