Types of Commodities You Should Consider Investing In

by Elearnmarkets on Basic Finance, Commodity Market

— 3 minutes read—

Contrary to popular belief, investing isn’t just for the rich.

Investing can help you stay ahead of inflammation, improve your wealth, and meet other financial goals.

Investing is beneficial, which is why everyone should do it. But, with the number of commodities you can possibly invest in, do you know what your best option is?

Commodities are raw materials that are consumed directly or used as an ingredient to produce other products.

Choosing what commodity to invest in is vital since it can make or break your financial success.

Putting all of your eggs in one basket without considering your needs and goals or thinking about how long you can invest can only lead to financial stress and even bankruptcy.

To ensure that your next (or first) investment can improve your financial status, consider investing in these commodities:

1. Silver

Gold might be more prominent as a precious metal investment, but that doesn’t mean that silver can’t compete. In fact, investing in silver can provide benefits that aren’t present when you invest in gold or other precious metals.

Don’t have enough money to buy an ounce of gold? Opt to buy silver first as this hard asset can be your ticket to hold some of the most expensive precious metals in the future. Thus, silver should be added to your investment portfolio as it’s cheaper than gold.

You can buy silver from Gainesville Coins that are about 80 times cheaper than gold (based on the market prices). This affordability makes it easy for a neophyte investor to jumpstart their investing careers.

Aside from this, silver is historically known to have low volatility. This means that unlike cryptocurrency, its value does not fluctuate significantly and only changes steadily over a period of time. Usually, an investment that guarantees low volatility can deliver superior returns and lower risks.

2. Crude Oil

Every country in the world uses oil. This resource is a necessity for businesses, manufacturing, businesses, and even households. A person’s daily routine won’t be complete without using gas, too.

Because of its demands, the oil and gas industry is considered as a high return industry. Investing in crude oil allows you to earn around 5 to 10 times the amount you initially invested. Although the risks are quite high, more investors are still choosing to pour their resources in this industry because of its promising high returns.

If you’re willing to take the risk and choose to invest in crude oil, here’s how you can make a profit from it:

Own physical crude: When you choose to invest in physical crude, you’ll have the assurance that the value of your investment will rise and fall based on its market price.

However, buying physical crude isn’t suitable for all investors. This investment requires careful handling. Physical crude is volatile and toxic, so expect that you’ll also have to invest in special storage facilities.

Own stocks of businesses operating in the oil and gas industry: One of the easiest ways to invest in crude oil is to buy stocks from businesses that produce, process, and sell crude. Buying a share of stock means you earn a certain percentage of the company.

The amount of profit you can earn is based on the appreciation value of your stock during a set period.

3. Livestock

According to the Food and Agriculture Organization of the United Stations, livestock contributes as much as 40% to the food and nutrition security of 1.3 billion people. Livestock also plays a significant role in sustainable food systems. Manure, for example, can help boost the livestock of regions where mechanization is low or minimal.

These present conditions can indicate that livestock can be a smart investment. Livestock is vital for people and businesses around the world, which means that this investment is always in high demand.

Investing in livestock can also increase your earning capability because of the array of products you can generate from it. Aside from selling meat, you can make money from the manure. There are businesses and individuals who buy manure to be used as fertilizer and renewable energy.

The moment your animals give birth, you can sell their offspring for money or opt to raise them for breeding purposes. This alone can provide a steady flow of income as livestock animals give birth several times a year.

By carefully choosing which animals to include in your livestock, you can reap more financial benefits. Cattle, chicken, sheep, and goat can produce both edible and non-edible products. Cattle, for example, can produce meat, milk, and leather, while chicken can provide meat, feathers, and eggs. You can quickly generate more income once all of these products are sold.

Knowledge Is Power

Research on the commodities available to you and learn about its own pros and cons. If you know people who invested in these commodities, ask about their experience and return on investments, as well. The information you’ll gather will make it easier for you to choose a commodity to invest in.


Disclaimer

Elearnmarkets.com wants to remind you that all our content is created solely for the purpose of education. No strategy, stock, commodity, fund or any other security discussed here is any way a recommendation for trading or investing. Elearnmarkets.com will not be any way responsible for trading losses incurred by any individual or entity for trading with real money. Please take advise of certified financial advisers before trading or investing.

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