One of the most talked-about global trends in recent years has been the rapid growth in population. As emerging markets around the world enter periods of robust growth, their populations have also been on the rise. Though a growing worldwide population will certainly cause a number of issues, it will also present commodity investors with a fair amount of opportunities, as some hard assets represent a great way to profit from the current trend [for more commodity news and analysis subscribe to our free newsletter].
Hydraulic fracturing, or “fracking”, has become one of the fastest-growing methods for tapping into abundant shale reserves held within the U.S. The process works by pumping fracturing fluids-like slickwater, gel or foam–into a wellbore at a sufficient enough rate to fracture the rocks below. When these fractures occur, the operator injects proppants into the well to prevent the fractures from closing when the fluid pressure is reduced. And finally, oil and gas leak from the fractures into the well for extraction. But the revolutionary process is not without its drawbacks, as many criticize the side effects caused from fracking. Below, we outline the case against fracking and why a number of people have rallied against this rapidly-developing energy extraction method [for more fracking news and analysis subscribe to our free newsletter].
Investor interest in commodities has surged in recent years, as the lucrative returns and growth potential provided by this corner of the market have successfully attracted even the smallest of investors. And while financial innovation has certainly helped democratize the asset class, investors of all walks should certainly familiarize themselves with the complexities and nuances of this market. In this article, we’ll take a look at seven key terms that all commodity traders should know [for more commodity news and analysis subscribe to our free newsletter]:
The global oil and gas industry is enormous, and serving the endless global appetite for oil and gas has propelled many companies into the realm of the mega-caps. Were they independent entities, the revenues of companies like Exxon Mobil (XOM), BP (BP) and Royal Dutch Shell (RDS.A) would be such that they’d be among the 30-largest countries by GDP. Not surprisingly, that makes them highly significant stocks as well [for more oil and gas news and analysis subscribe to our free newsletter].
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].
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].
When it comes to investing, we often look to experts and top traders, not just to learn their secrets, but to be inspired by their success. Quotes from top commodity traders and experts in the commodities market can serve to illuminate, invigorate, and motivate our research and trading. Below, we outline 20 of our favorite quotes about the hard-asset industry that all investors should know [for more commodity investing news and analysis subscribe to our free newsletter].