Trading Commodities

Discussion in 'Stock Market Education' started by Spowys, Jul 20, 2014.

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    Jul 20, 2014
  1. Spowys

    Spowys Member

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    How do you guys go about trading commodities like gold and silver? I'm interested in investing some money into silver but I'm unsure of how the market works for these sort of things. Where should I get the silver? What sort of returns can I expect to see long term?
     
    Spowys, Jul 20, 2014
    Spowys, Jul 20, 2014
    #1
    2. Jul 20, 2014
  2. Yudison MB

    Yudison MB Member

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    PLS read my tweet account @yyudison , I have been posting simple gold trading set up
     
    Yudison MB, Jul 20, 2014
    Yudison MB, Jul 20, 2014
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    3. Jul 20, 2014
  3. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I use ETFs that buy the commodities. I'd avoid ETFs that are heavily leveraged - i.e., that borrow a lot.
     
    JR Ewing, Jul 20, 2014
    JR Ewing, Jul 20, 2014
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    4. Jul 24, 2014
  4. Yudison MB

    Yudison MB Member

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    who s followed my gold trading set up on my twiter @yyudison, must be got it prof1.5 % of equity in 9 days
     
    Last edited by a moderator: Jul 8, 2016
    Yudison MB, Jul 24, 2014
    Yudison MB, Jul 24, 2014
    #4
    5. Jul 24, 2014
  5. Yudison MB

    Yudison MB Member

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    who s followed my gold trading set up on my twiter @yyudison, must be got profit 1.5 % of equity in 9 days
     
    Last edited by a moderator: Jul 8, 2016
    Yudison MB, Jul 24, 2014
    Yudison MB, Jul 24, 2014
    #5
    6. Jul 26, 2014
  6. Colebra

    Colebra Well-Known Member

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    EFTs = Exchange-Traded Fund right?

    So you basically own a number stock of this fund, correct?
    And in their turn, the fund owns a huge number of stocks from companies and commodities, right?
    As the market fluctuates, you will win or lose, the average profit or loss from all those stocks owned by the fund?

    This way you'll win less, but be safer because the investment is filtered by the fund, is that it?
     
    Colebra, Jul 26, 2014
    Colebra, Jul 26, 2014
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    7. Jul 27, 2014
  7. JR Ewing

    JR Ewing Super Moderator Staff Member

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    A better commodity ETF will simply use available investors' funds to buy the commodities themselves. So if you own shares of GLD or OIL or whatever, you basically own gold and crude without the hassles of physically possessing and storing them, or without having to bet on short term movements in those commodities via futures.

    http://etfs.morningstar.com/quote?t=gld

    http://etfs.morningstar.com/quote?t=oil
     
    JR Ewing, Jul 27, 2014
    JR Ewing, Jul 27, 2014
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    8. Aug 2, 2014
  8. Colebra

    Colebra Well-Known Member

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    What's at stake for the ETF in this?
    Do they get a percentage when I sell? Or do they get a percentage off the top, when they use my money to buy?

    A future would be for me to own a stock of Gold, whatever it's value is in 2020 or something right?
    What's the upside in this kind of investing?
     
    Colebra, Aug 2, 2014
    Colebra, Aug 2, 2014
    #8
    9. Aug 2, 2014
  9. JR Ewing

    JR Ewing Super Moderator Staff Member

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    JR Ewing, Aug 2, 2014
    JR Ewing, Aug 2, 2014
    #9
    10. Aug 3, 2014
  10. Colebra

    Colebra Well-Known Member

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    Colebra, Aug 3, 2014
    Colebra, Aug 3, 2014
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