Question by openformi: Investing in commodities?
Hi,
How do i go about investing in commodities in Singapore? I have an account with Phillips Securities but they seems to have commodity indexes rather than raw commodities such as gold, corn, wheat etc.
Cheers
Most detailed answer:
Answer by Yamadog itf’s always seem to be managed. That means a fee for services. If you have cash, you can buy silver, gold, wheat, cotton, steel, etc. and use it directly.
It’s said that money makes money; it does, but to whom? Plus, there is the person that has it to begin with. Seek your own counsel and confer with a bank official where your funds are kept. I’d get advice from there rather than on Net. Like face 2 face. Wear good clothes
Question posed by Andrew: Why does the United States consider healthcare an open market commodity ?
Why does the United States consider healthcare an open market commodity when all other developed countries guarantee their citizens some basic level of healthcare?
I need help for a class, and need to write a 4 page paper, please help me with any insight or where I can find information! Thanks!
Best answer:
Answer by AnimalFilter It’s capitalism in it’s purest form. And the US doesn’t deny healthcare to anyone – it’s just that the US doesn’t have any kind of centralized PREVENTATIVE care.
It doesn’t matter who you are – you can walk into a hospital and they will treat you no matter what. But, the problem is that it’s awful to wait until you have the heart attack to get treatment. With preventative insurance, the person might have been able to prevent it.
There are definitely benefits to free market healthcare as well. My employer provides my benefits, which is the case for most in the US. Anyhow, I can call the doctor and tell them I’m on my way and they will see me within a few hours. There’s no waiting lists for things like hip replacements, there’s no restrictions on the kinds of medicines that you can take, and if you have insurance they’ll treat a 90 year old just as much of a priority as a 10 year old…
Just thoughts… there’s a lot to be said for and against free market healthcare.
Partially related are the drug companies. If they can’t make the big bucks on new drugs anymore, they’ll just stop making them… Free market is why all the new drugs are invented in the US…
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A question asked by Sterkwell: What is the difference between a purchased Commodity (in the commodities market) and Futures.?
Is there a difference between buying wheat in the commodities market, for example, and buying wheat futures?
The best answer:
Answer by jeff410 The spot price is what you can buy or sell it for right now for immediate delivery, the posted prices at the grain elevators The futures prices is what you can buy or sell it for at some point in the future using a futures contract.
This is a great video on the subject of commodities investing.
Investing in the stocks of companies that produce commodities has always out performed an investment in the commodity itself. For example, an investment in gold mining companies that are growing their net worth has always out performed an investment in gold bullion itself. Discover how net worth growth has always allowed companies to produce superior investment returns far out pacing all other types of investments.
A question asked by Python: A free website where I can simulate stock/commodity trading?
I’ve used top10traders, but I’m wondering if there’s another website where I can open a free account, start out with some fake cash, and get as close to the real thing as possible. Thanks!
The top answer:
Answer by maggikate I’ve had a lot of fun on investopedia.com.
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A question asked by sharesomebody: Investing in commodities / futures?
I am interested in investing in Commodities but I am not sure how or how much money an initial investment would be.
I have been trading stocks for a year now on sharebuilder but they do not have a section for Commodities / futures.
Any advise or tips would be appreciated.
Chosen answer:
Answer by wartz Commodities are not for the faint of heart. Have a long talk with your broker before going there.
Whether you agree or disagree, why not leave your own thoughts below.
Question posed by John Derit: Has the increase in commodities trading raised the price of goods?
Does anyone have any literature on this.
Most detailed answer:
Answer by Hello G It is very possible. Speculation by people who do not have a stake in the physical product artificially increases demand. Without a corresponding increase in supply, which almost all commodities have relatively fixed short and medium-term supply, prices increase.
I am sure there is literature on the empirically observed effects of speculation on commodity markets, but the theory is fairly straightforward.
Question by g1970: How do the different financial markets (stock, commodity, currency, bond & interest rate) effect each other ??
Top answer:
Answer by lguerraburgos Wow, if someone knows the real effect, it would start profiting from the idea. Later, it would be useless.
Still, inter-market behavior is very productive and can give you some edge in trading. Commodities prices influence companies related to the commodity in question. Ex. oil.
Option and future markets easily affect stock market trading. It is believed that future and option players are smarter, wealthier, and better informed that securities traders so a big trade in any of those market will influence stock trading rapidly. For example, if a big player wants to raid the market (make it go lower), they sell S&P futures, leading to program selling to start. If there is weakness in the market, a pretty good sell-off is guaranteed.
A question asked by Greg: Bush gets lesson in commodity markets from his friends in Saudi Arabia?
“Bush got a chilly response to his plea. The kingdom said it would increase production only when the market justified it, and that production levels appeared normal.”–AP
Let’s see… oil demand is marginally up, but then so is production, with surplus margins about the same as ever, but if we look at demand for oil futures contracts as driven by commodity index derrivatives, those are up 380% in the last 24 months. Oil demand and supply up a bit, investor demand for commodity contracts up gigantically.
Do you think the Saudi princes rolled their eyes?
It appears that many in the YA Answers community doesn’t really understand commodity markets either.
You can’t explain oil prices doubling by looking at world demand for oil or production levels (which are up right along with any marginal increase in demand). You can explain it when you understand the demand for commodity index funds is up and driving up the price of commodity futures. You see, we began devaluing the dollar in 2002 because it appears the Administration decided that Americans make too much, and this lead to huge trade deficits, so they decided to give us all a huge pay cut to stop the flow of outsourcing jobs overseas. Investors, however, try to preserve capital, so they invested in commodities to offset dollar devaluations, and when your rank and file investors noticed these funds had high returns, they piled into these funds as well, and that is what is driving the prices for the most part at this point.
many “don’t” , not “doesn’t”. My bad.
Best answer:
Answer by V C Yes!
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