Commodity is the oldest form of financial instruments. Commodities’ market is almost as old as human civilization itself. Historical evidence suggests that rice might have been the 1st commodity around 6,000 years ago. In times of Sumerian civilization (4,500 BC) people used clay tokens as a form of money to buy livestock..
Today, commodity trading forms the basis of the global trade ecosystem. With the advent of online commodity trading, private traders gained access to global commodities markets with relatively modest amount of capital..
Commodities have become a popular means of inflation hedging and portfolio diversification. For many traders and investors, commodity trading is a preferred way to protect funds and reduce the overall risk for their portfolios..
What are the major commodities?
Generally, commodities can be divided into four main categories:
1.Agricultural commodities, including food crops (cocoa, cotton, corn, coffee, etc.), livestock (hogs, cattle) and industrial crops (including wool and lumber).
- Energy commodities, including natural gas, crude oil and gasoline, coal and uranium, ethanol and electricity.
- Metal commodities, including base metals (i.e. iron ore, zinc, aluminum, nickel, steel, etc.) and precious metals (gold, silver, palladium and platinum).
- Environmental commodities, including renewable energy certificates, carbon emissions and white certificates
Why Commodities Investment?
The presence of commodities in an equity-only portfolio can lower the volatility due to the absence of a direct correlation between commodities and other asset classes.
Commodities can serve as a safe haven in times of global economic uncertainty and market turbulence, because they can retain their physical value.
Commodities’ intrinsic value is independent from currencies. They will often hold their value, even if a currency falls during a period of inflation.
Speculation on commodities prices
Commodities may be highly volatile, experiencing wild price swings. Trading commodities CFDs is one way to try and profit from significant price fluctuations.
- Choose a tenure and invest your capital sum minimum of N 200,000 or more for a direct credit of 60% returns every 12 months.
- Count down to ‘pay-day’ as you watch your money grow.
- Liquidate or roll over your initial capital after tenure.
- Earn 5% commission off every referral from your unique affiliate link