Economist Gary Shilling’s theory on small luxuries as the new status symbols. Plus, Shilling’s insights on stocks, sectors and China’s effect on the commodities bubble. www.forbes.com

by DFID – UK Department for International Development

Question by Sean: Is auto insurance a commodity on the free market or does it work similarly to health insurance.?
I may be completely off base here I have no Idea how either of the two work as far as the free market as far as their coverage I think I have some idea.
I live in Colorado.

The best answer:

Answer by mbrcatz
Depends on what state you are in.

Whether you agree or disagree, why not leave your own thoughts below.

by Chris Devers

A question asked by Joey W: thinking about investing in crude oil, anyone know much about investing in this commodity?
Seems like the perfect commodity to invest in from an economic standpoint, limited resources/ huge demand…what are the drawbacks?

Chosen answer:

Answer by Adam L
Commodities (such as oil) are highly volatile, and generally risky investments. If you are absolutely convinced that oil is going to go up and are willing to risk your shirt, go buy oil futures. This is the option/right to buy oil at a certain date at a certain price, usually close to today’s price. If, on that date, oil is worth more, you simply buy for today’s low price and sell for the high price.

However, you can lose everything this way. Price is lower on that date, and you have to buy the oil at the higher price, and sell low. You could lose a LOT of money.

A more risk averse method would be to invest in commodity base d Exchange Traded Funds, such as DBC or GSG, which invest heavily in energy/oil futures, but hedge their bets with T-bills so they aren’t as risky. They are about as risky as stocks – you can’t lose more than you put in, and are unlikely to lose all or nearly all of your investment. But, then again, you won’t quadruple your money in a week either.

Provide your own answer to this question below!

by mrlins

Question by tyagds: should i go for on line commodity trading?

Most comprehensive answer:

Answer by Just-a-human
Its hard enough to trade stocks. Its a very risky biz. If you are not really experienced, Id go elsewhere.

How about adding your own answer to the comments below!

by T U R K A I R O

Question by William M: Do you think that commodity options trading could create a billionaire in his/her early to mid 20s?
I want to know your views and opinions here as to wether you think that commodity options trading could create a billionaire in his/her early to mid 20s?

Also, I heard that a certain Richard Dennis traded commodity options, and in 10 years he turned his $ 400 into $ 200 million. Think if you started with $ 2k, in theory you could have started at my age (18) with $ 2k and ended up with $ 1 billion at 28, right?

What do you think?

Top answer:

Answer by matthewspeed
If you KNEW what was going to happen there is no limit to the amount that could be made. A person could easily realize a return of 100% daily on each round trip options contract (one buy, one sell) if they could correctly pick the direction a stock with large option volume was going to move. The problem is being right 100% of the time.

Whether you agree or disagree, why not leave your own thoughts below.

If, like me, you are passionate about the whole subject of futures market then I am sure you will find this video to be well worth watching. If so, please leave a comment!

usawatchdog.com – Occupy Wall Street held a nationwide protest, and after 2 months, it looks like it is growing. Thousands protested income inequality and Wall Street greed and corruption. One commentator said it is not a protest against the wealthy–it is a protest against the cheaters that rigged the game. Spot on!! Only problem is, the game is still rigged and the top bankers are not prosecuted for crime. This is turning into a major campaign issue for both Democrats and Republicans. Is Syria headed for civil war? It sure looks that way. The Arab League has rebuked the leadership of Syria because of the violent reaction to protests over the past few months. Will Syria be another Libya for NATO? The EU debt crisis is getting worse, not better. It is reported the wealthy are moving their money out of Italian banks. The MSM is oblivious to this. Meanwhile, the fallout from MF Global’s bankruptcy is ballooning. Traders fear the commodities futures market is not safe and the system may lock up. Jim Willie predicts before it’s over, COMEX will be cash and carry only. MF Global bankruptcy is an unfolding disaster. A new report by Shadowstats.com says the annual deficit is not .3 trillion. If GAAP accounting was used, the US annual deficit would be north of trillion. Williams says the government deficit is out of control and not sustainable. Finally, the US announced this week it is putting troops in Australia. 2500 will be stationed there in the next few years. That …
Video Rating: 5 / 5

by motagirl2

A question asked by Kamran m: i want to invest in usa commodity futures market please guide me some good and reliable brokers?

Top answer:

Answer by Alex
There are plenty of brokers. Visit elitetrader.com for broker reviews.

Whether you agree or disagree, why not leave your own thoughts below.

by -Weng-

A question asked by Johny: Market depth on just one side in futures markets?
If I have just ask order size and no bid roders – does it mean that i can end up with the asset – without being able to sell it?

for instance:

futures price:
bid: 1000
ask: 1002
bid size: 0
ask size: 1

thanks

The No 1 answer:

Answer by Warren534_FuturesTrader
Not sure what market you are referring to, or if it trades electronically or not (as most markets now do). In the example you gave, I would suggest checking with your broker’s order desk to determine the true bid price.

Whether you agree or disagree, why not leave your own thoughts below.

by ILRI

A question from Nelly O: what are the significant variables of a normal commodity market?

Chosen answer:

Answer by SPQR
unless there is an industry issue with regards to supply (think oil), demand drives prices over the long term. in the short term, prices are determined by supply considerations (think coffee, oranges, etc.).

How about adding your own answer to the comments below!

by chexee

Question by Shashi: What is the best time for trading in Commodity?

The best answer:

If you know better then please let us know below.