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To Invest or Trade in Commodities

By January 31, 2013

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We are starting to get back into more of a risk-on environment.  With commodities prices still well below the peak from early 2011, there could be some decent upside potential in the next couple years for commodities as a whole.

There are always opportunities to make money off commodities from the short side and the long side.  Sometimes there is an overall bias in commodities where they tend to move in the same direction. However, some commodities are usually moving higher while some are moving lower at any given time.

If we are entering another upswing in commodities, this may be a good time to invest in commodities versus trading commodities.  This is where an investor could buy an unleveraged group of commodities through a commodity etf.  It may payoff well with little work in the next year or two.

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