Is Commodity Investing Dying? Part 1

Commodity futures markets were originally designed for producers to hedge their risks against unforeseen complications. But as the years went on, more and more retail investors began piling into this asset class, as they enjoyed the diversification benefits offered by hard assets. Now, many long-term buy and hold investors allocate anywhere from 5-20% of their assets to commodity holdings, but that trend may be hitting a roadblock [for more commodity news and analysis subscribe to our free newsletter].

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How Ags Will React to Last Year’s Drought

The agricultural industry was hit hard by the most severe and extensive drought in at least 25 years in 2012, which had an impact on crops, livestock and food prices at all levels. While prices have already started to increase in the fourth quarter of 2012, the majority of the impact on retail food prices will likely be seen throughout 2013, according to a recent report by the United States Department of Agriculture (“USDA”) analyzing the drought [for more agricultural news and analysis subscribe to our free newsletter].

Posted in Agriculture, Commodity Futures, Corn, Livestock, Soybeans, Wheat | Leave a comment

Investing In Steel: The Definitive Guide

Steel has been known to mankind for thousands of years; its use dates back to the 1700s and has played a key role in human infrastructure. While new stronger metals—like titanium—have since developed, steel is the most cost-effective option for building products, and it remains in high demand worldwide [for more gold news and analysis subscribe to our free newsletter].

Posted in Academic Research, Actionable Ideas, Asset Allocation, Commodity ETFs, Commodity Futures, Commodity Producers, Industrial Metals, Steel | Tagged , , , , | Leave a comment

Gold On A Losing Streak

With the world still awash in various quantitative easing, money printing and stimulus measures, the long-term picture for higher gold prices is certainly rosy; however, the short term has not shined as bright. Since October, the SPDR Gold Shares ETF (GLD)–which represents gold bullion–has fallen by more than 7% and some analysts peg that it could fall even further in the upcoming months [for more gold news and analysis subscribe to our free newsletter].

Posted in Asset Allocation, Commodity ETFs, Commodity Futures, Gold, Precious Metals | Tagged , | 3 Comments

China Demand Gives Cotton A Boost

Cotton has gotten plenty of attention from investors in the textile industry recently. Last year, the soft commodity suffered significant losses, surrendering just under 13% on the year. This year, however, rising demand from China has the bulls lining up to place bets on what they believe will be a great year for cotton [for more commodity news and analysis subscribe to our free newsletter].

Posted in Actionable Ideas, Agriculture, Asset Allocation, Commodity ETFs, Commodity Futures, Cotton | Tagged , | 2 Comments

Trade The Swing In British Petroleum (BP)

The bears’ frustration has only intensified over the last week as equity markets continue to ascend higher with no clear resistance in sight. Selling pressures did resurface briefly on Wall Street after investors digested commentary from European Central Bank President Draghi who noted that the euro’s recent strengthening in the currency market could hinder the currency bloc’s already sluggish recovery. Last week’s U.S. dollar rally kept a lid on commodity prices across the board; ags took the worst beating while gold failed to take on safe haven appeal once again [for more market news and analysis subscribe to our free newsletter].

Posted in Commodity Producers, Commodity Trading Outlook, Commodity Trading Trends, Energy, Trading | Tagged | 1 Comment

Why Jim Rogers Is Hoarding Gold And Silver

Jim Rogers has never been shy about vocalizing his love of precious metals. Though he has some cautionary sentiment about short-term gold prices given their 12-year bull run, the legendary investor still remains optimistic about the long-term future of both silver and gold. Rogers feels that investors should be loading up on silver and gold coins right now as he notes that they have surged in popularity and that mints have been consistently selling out of silver coins because investors are worried about the future [for more gold and silver news and analysis subscribe to our free newsletter].

Posted in Actionable Ideas, Asset Allocation, Gold, Precious Metals, Silver | Tagged , | 2 Comments

Think You Can’t Afford Farmland? Think Again

Investing in farmland has been a staple in the commodity world for decades, as many have enjoyed handsome returns by holding plots of arable land. But as the years have gone on, it has become harder and harder for an individual to afford this hard asset, essentially closing out this investment opportunity for many. Enter Fquare, a new service that aims to eradicate this problem. We had the opportunity to speak with CEO and Co-Founder Charles Polanco about his company, and how it can benefit investors of all kinds [for more farmland news and analysis subscribe to our free newsletter].

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Company Profile: Silver Wheaton (SLW)

The precious metals industry has experienced a strong couple of years with record low U.S. interest rates and several bouts of quantitative easing. As an alternative currency, precious metals have benefited as an inflation shield, while the global flight to safety made it one of the only reliable safe haven investment destinations, aside from U.S. Treasuries [for more precious metals news and analysis subscribe to our free newsletter].

Posted in Actionable Ideas, Asset Allocation, Commodity Producers, Precious Metals, Silver | Tagged , | 1 Comment

Company Spotlight: Chevron Corporation (CVX)

The oil and gas industry has been dramatically expanding over the past few years, particularly in the United States and emerging markets. In fact, the U.S. is expected to overtake Saudi Arabia and Russia to become the world’s largest oil producer by the second half of this decade, according to the International Energy Agency. One of the leading names on the oil front has long been Chevron (CVX), which is one of the largest crude producers in the U.S. [for more oil & gas news subscribe to our free newsletter].

Posted in Actionable Ideas, Commodity Futures, Commodity Producers, commodityHQ.edu, Energy, Natural Gas, WTI | Tagged | 2 Comments