Natural gas trading has grown to be one of the most dominant industries in the commodity world. With violent daily movements and consistent volatility, natural gas futures and the ultra-popular United States Natural Gas Fund (UNG) have become ideal instruments for active investors. In order to make proper trades on the fast-paced natural gas industry, investors must stay on top of developing news and breaking trends. One of the best ways to keep updates on natural gas markets and trends is to utilize Twitter. It may be difficult for some to view Twitter as a viable source for trading info, but there are a number of professionals who aim their tweets at keeping their followers in-the-know. Below, we outline 10 must-follow natural gas Tweeple to give you the best information for your commodity trades [see also 25 Ways To Invest In Natural Gas].
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].
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].
Interest in gold as a holding within long-term, buy-and-hold portfolios has skyrocketed in recent years, thanks to both the rapid price appreciation of the yellow metal as well as developments in the ETF industry that have made this asset class more accessible than ever before. In addition to physically-backed gold ETFs such as IAU and GLD–which have about $80 billion in assets between them–investors have embraced “indirect” exposure to gold miners through stocks of companies that discover, extract, and sell the precious metal. Because the profitability of these companies depends on the prevailing market price for the assets they sell, these stocks should tend to move in unison with spot gold prices–at least over the long run.
Investor interest in commodities has surged in recent years, the result of both a prolonged rally in natural resource prices and the development of new vehicles that facilitate access to this asset class. Specifically, the launch of a robust lineup of exchange-traded products that utilize both physical commodities and commodity futures contracts has brought commodities to the masses; they’re no longer reserved for the largest and most sophisticated investors [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later]. Commodities have obvious appeal to active investors looking to generate profits from short-term price movements; the volatility of this asset class is ideal for risk-tolerant individuals who actively monitor their positions. But commodities may also have appeal to the long-term, buy-and-hold crowd; this asset class has the potential to bring both diversification and return enhancement to traditional stock-and-bond portfolios.
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Tagged GLD, IAU, UNG, USO