Abstract
Commodities can be volatile and they don’t always move together. There are five basic groups of commodities: energies, metals, grains, softs, and livestock. Some commodities can be in strong uptrends, while other commodities trend lower. Therefore, investing in one particular commodity could make you a big winner or a big loser. It is better to be safe than sorry and spread your risk. Commodity exchange traded funds (ETFs) are a simple way to diversify your commodity investment and there are some good ones like the iPath Dow Jones AIG Commodity Index Total Return (DJP) and the PowerShares DB Commodity Index Tracking Fund (DBC) which invest in a broad group of commodities that trade more like a stock or mutual fund.
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James, T. (2016). Trading Versus Investment in Commodities. In: Commodity Market Trading and Investment. Global Financial Markets. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-43281-0_4
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DOI: https://doi.org/10.1057/978-1-137-43281-0_4
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Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-137-43280-3
Online ISBN: 978-1-137-43281-0
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