Investing in Commodities For Dummies, 2E by Amine Bouchentouf

Investing in Commodities For Dummies, 2E by Amine Bouchentouf

Part 1
Getting Started with
Commodities

IN THIS PART …
Know why you should invest in commodities, check out the
commodities markets, and find the best ways to invest in
commodities.
Celebrate the advantages, acknowledge the downsides, and manage
risk when investing in commodities.

Chapter 1
Investors, Start Your Engines!
The Basics of Commodities
IN THIS CHAPTER
 Defining the commodities markets
 Determining the best ways to trade commodities
 Identifying the major commodities
The commodities markets are broad and deep, presenting both
challenges and opportunities. Investors are often overwhelmed simply
by the number of commodities out there: more than 30 tradable
commodities to choose from. How do you decide whether to trade crude
oil or gold, sugar or palladium, natural gas or frozen concentrated orange
juice, soybeans or aluminum? What about corn, feeder cattle, and silver?
Should you trade these commodities as well? And, if you do, what’s the
best way to invest in them? Should you go through the futures markets,
go through the equity markets, or buy the physical stuff (such as silver
coins or gold bullion)? And do all commodities move in tandem, or do
they perform independently of each other?
With so many variables to keep track of and options to choose from, just
getting started in commodities can be daunting. But have no fear — this
book provides you with the actionable information, knowledge, insight,
and analysis to help you grab the commodities market by the horns.
Maybe you’ve heard a lot of myths and fantasies about commodities. I
shatter some of these myths and, in the process, clear the way to help
you identify the real moneymaking opportunities.
The commodities universe is large, and investment opportunities
abound. In this book, I help you explore this world inside and out. By
exploring this fascinating universe, not only do you get insight into the

Investing in Commodities For Dummies, 2E by Amine Bouchentouf