Your Questions About How To Invest In Commodities

Carol asks…

Where/how can I invest in commodities?

I have just started working, and very new to investing. I wanted to invest in certain commodities (gold, silicon, etc). I was wondering if there were any free websites that updated the current prices of commodities. I was also wondering what companies trade commodities (like in stocks, scottstrade). I apologize if this question seems very easy to answer. Any information would be helpful. Thank you.

John answers:

Go to :

low-cost-stock-recommendations

.com

Click on the Button you are interested in. In this case it sounds like you will want to look at the Precious Metals page.

It is an informative website. May I suggest looking at the DRIP’s page also.

Mark asks…

How would i go about investing in commodities?

I would like to invest some money into commodities like wheat, milk, soybeans etc. Can somebody tell how an individual with $2000 can do that. Thankyou

John answers:

You need to do extensive research before even thinking of doing this.

Commodity trading (future options) is done by opening an account at a brokerage house that will take your money. It will probably be hard to impossible with the amount you have. The reason for that is that, in commodity trading, you can make very high returns (1000% or more, even) IF you guess right. But the downside is that, unlike equities, you can lose MORE than your initial investment (much MUCH more). So the brokerage will need to see substantial other assets you’re willing to risk, and most have fairly high qualification limits for income and assets.

If you don’t know what you’re doing, you’ll almost certainly lose your money. The previous poster is right, stick to equities.

George asks…

Now a days I invest in shares. i want to start investing in commodities How should I .?

John answers:

I’ll give you some good advice. Don’t speculate in commodities. The margin calls will eat you up alive. Options may soften the blow but most options expire worthless.

If you’re hell bent on doing it here’s some useful tips.

If you see a category 4 or 5 hurricane entering the gulf of mexico and it’s projected landfall will affect the Lousiana or Texas refineries then go for it. You might consider the NYMEX (New York Mercantile Exchange) spot month for oil, November heating oil, and the next month out for gasoline. If the storm damages one or more of the refineries you’ll make a killing. Don’t get too greedy because these markets can reverse themselves in the blink of an eye.

You’ll need to open an account with an FCM (Futures Commission Merchant). They will expect you to ante up with at least $25,000.

Good luck

Sandy asks…

Who and how can I report the teikoku commodities scam?

I believe that there is a Scam being operated by a company called Teikoku Commodities. They offer you a great opportunity to invest in commodities. They have a very convincing WEB site, your own account, and are registered with what they claim is a government body in Japan.
please contact my E-mail if you have been duped by this company.

John answers:

First… If it is not a US company, the US really can not do much. All US investment houses are under the SEC (Securities Exchange Committee) not the Southeast Conference. (Little football humor) You can call the SEC to report the site you found to be a fraud. They may know of an International governing board that looks into that.

Second… Please tell me you did not invest with them. We have thousands of commodities brokerage houses in the US that are all regulated. Why, why, WHY would you look at a company that is only a web site and not located in the US???

Stop looking for the get rich quick thing. The higher the reward the higher the risk. And more often that not, the risk will always out weigh the reward.

Good luck….

Michael asks…

How to buy commodities online in the UK?

I want to try out investing in commodities online. I want to buy and hold for a period of 1+ years. Do any of you know an online platform that will allow me to do this that is available in the uk?

John answers:

Many fund companies provide these specialty offerings, such as Vanguard Group, American Century Investment Management, Franklin Templeton Investments, Tocqueville Asset Management, Rydex Investments, ProFund Advisors, U.S. Global Investors and AIM Advisors.

Still, commodities markets “aren’t for amateurs.” Doelling added. His recommendation: if you have $5,000 to $25,000 to invest and have decided to trade on your own, be “very selective” in your trades and don’t try to get rich quick.

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