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?
I use ETFs that buy the commodities. I'd avoid ETFs that are heavily leveraged - i.e., that borrow a lot.
who s followed my gold trading set up on my twiter @yyudison, must be got it prof1.5 % of equity in 9 days
who s followed my gold trading set up on my twiter @yyudison, must be got profit 1.5 % of equity in 9 days
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?
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
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?
ETFs generally get a % of investor $ as a fee. http://financials.morningstar.com/etfund/operations.html?t=GLD®ion=usa&culture=en-US http://financials.morningstar.com/etfund/operations.html?t=OIL Futures speculate on where something will be priced within a certain timeframe. Can certainly be risky.
Thanks, but I can barely read this Is Morning Star an online broker? One year membership is 200$. Not too brutal...