USA Oil Reserves: The World’s Largest?

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].

Posted in Commodity ETFs, Commodity Futures, Commodity Producers, Energy, WTI | Tagged , | 11 Comments

How to Trade Platinum Futures

Platinum, one of the more industrious precious metals, has become a popular trading instrument in recent years, as investors have seen the benefits of making a play on this hard asset. Platinum’s uses span from catalytic converters to thermometers and even dental equipment. Given its heavy dependence on an emerging market, South Africa, as far as supply is concerned as well as its massive presence in the industrial world, trading platinum futures has become an ideal play for a number of active investors. Below, we outline the best ways to trade these contracts as well as some helpful tips to help you stay ahead of the platinum curve [see also Ultimate Guide To Platinum Investing].

Posted in Commodity Futures, Platinum, Precious Metals | Tagged , , , | 3 Comments

Four Little Known Factors Driving the Price of Platinum

Platinum, one of the rarest elements in the world, is among the most popular commodities for investors and traders. As a member of the precious metals family, platinum offers a compelling long-term hold as something of a safe haven, but it also can be used as an effective trading instrument given its high liquidity as well as volatile supply chain. Platinum is generally obtained as a byproduct of nickel and copper mining and annual production is only a fraction of the gold and silver mined, making the metal more coveted and far more rare. Just how rare is platinum? It is estimated that all of the platinum in the world could fit into a cube that is roughly 20 feet on every side. As this hard asset continues to grow in popularity, we take a look at four price drivers that demand attention from traders and investors alike [see also … See the full story here

Posted in Commodity Futures, Platinum, Precious Metals | Tagged , , , | 3 Comments

How to Trade Coffee Futures

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].

Posted in Agriculture, Coffee, Commodity ETFs, Commodity Futures | Tagged , | 2 Comments

Beyond TIP: Five Inflation-Protected ETFs Worth a Look

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.

Posted in Asset Allocation, Data Releases, Inflation | Tagged , , , , | 5 Comments

Four Little Known Factors Driving the Price of Coffee

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].

Posted in Agriculture, Coffee, Commodity Futures | Tagged , | 2 Comments

Seven Coffee Traders Worth Following on Twitter

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].

Posted in Agriculture, Coffee, Commodity Futures | Tagged , | 1 Comment

Should You Buy Gold Before QE3 is Announced?

Markets have been calling for a third round of quantitative easing for quite some time, as U.S. equities have been unable to shake pesky euro zone fears as well as our own debt issues at home. Any news or anticipation from the Fed over the past few months has volleyed markets back and forth, as traders look for Ben Bernanke to ride to the rescue with yet another asset purchasing program. Tomorrow will see a key address from the Fed, in which many are considering to be a make or break moment for 2012. With “Operation Twist” coming to an end in June, the vast majority of analysts and investors are anxiously awaiting for the Fed to make a definitive commentary on QE3 [see also Is Gold Overvalued? The Bearish Case vs. The Bullish Case].

Posted in Commodity ETFs, Commodity Futures, Gold, Precious Metals | Tagged | 11 Comments

UNG Catches Fire, Natural Gas Up 7%

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].

Posted in Commodity ETFs, Commodity Futures, Energy, Natural Gas | Tagged | 5 Comments

Five Must-Read Blogs for Coffee Traders and Investors

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].

Posted in Agriculture, Coffee | Tagged , | 1 Comment