Wednesday 27 May 2020

Investing in commodities

Investing in commodities is becoming increasingly popular. In the past, only professional investors could invest in commodities such as oil and gold. However, with the advent of online brokers, anyone can take advantage of fluctuations in the commodity markets. This article explores how you can benefit from trading the commodity markets.

How can you invest in commodities?

There are several ways you can invest in commodities. We discuss the different ways for trading commodities in this section.

Active speculation in commodity pricing
If you want to invest in precious metals such as gold and silver, it is possible to purchase a fixed amount. This becomes more difficult with commodities such as oil and grain, because these materials are only traded in large quantities. Thanks to the advent of CFD brokers, it is now possible to speculate on the price of commodities as a private investor without being responsible for the storage of the commodity.

But how does trading in commodities work when you use CFDs? With CFDs you can speculate on commodities’ price increases and drops. Thereby you can respond perfectly to the latest market developments. Plus500 is a great option to try trading commodities.


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