What are Commodity Investments?

Commodity investments include raw materials such as oil, copper, tin and aluminum, as well as agricultural products.

Commodities include raw materials, like oil, copper, tin and aluminum, as well as agricultural products, such as cocoa, coffee and sugar. Most, if not all, non-professionals who get directly involved in trading commodity investments wind up losing money. We believe the best way to invest in, and profit from, commodities is by purchasing commodity stocks. Commodity stocks are shares of well-established companies that will benefit from a rise in commodity prices.

Resource companies produce and sell commodities. It’s hard for them to bring a distinct product to market, but they can distinguish themselves by how well they find and produce their products.

Commodity investments are subject to wide and unpredictable swings in the prices. In the rising phase of the business cycle, when business is booming, resource demand expands faster than resource supply, so resource prices shoot up. This balloons profits for commodity investments. When the economy slumps, resource prices fall, and this drags down resource stock prices.

Here is one general commodity tip that is especially relevant to natural gas stock prices: If people generally believe the price of a commodity is sure to go up, the reverse often happens. That’s because suppliers and users of the commodity also read the newspapers, and they both take steps to protect themselves and profit from the situation. The suppliers try to increase supplies, and the users try to become more efficient or find alternative commodities.

When researching commodity investments, or any other type of investments, TSI Network recommends using our three-part Successful Investor philosophy:

1. Invest mainly in well-established companies;
2. Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; the Consumer sector; Finance; Utilities);
3. Downplay or avoid stocks in the broker/media limelight.

Our free report reveals how you can increase your profits — and cut your risk — in commodity investments. Download Commodity Investments: Fertilizer Stocks and Potash Stocks That Will Profit from Rising Food Demand today.