Investing in Commodity

Last week, one of my friend asked me of how to invest in commodity. Then I simply answered her e-mail with some choices, now I'll explain to you a bit in commodity investing.

As recently the issues of Korean war, China monetary action, & Euro-region problems have caused the whole exchanges in the world broken down, before they rebounded several days ago, people asked me of how to invest in commodity, as saving our money in USD is not as interesting as in the past, so I finally told her to invest in hard metals like Gold or Silver.

Here's the way of investing in Gold or Silver:

1. The easiest way is to buy the physical metal in term of the bar either Golden Bar or Silver Bar
2. Trade in derivatives for commodity like Gold or Silver Futures Contract (Risky yet Rewarding)
3. Trade stocks that have relation with those commodities like FCX (Freeport-McMoran Copper & Gold, Inc.) or SLW (Silver Wheaton) or ANTM.JK (Aneka Tambang Tbk)
4. Trade the commodity futures options (Considered as safer one)
5. Trade the stock options of No.3 Stocks if available (Considered as safer one)

The No.4 & 5 is my priority but it will be quite hard for common people to do those trading as in Options we must consider some parts that might affect the profits & losses. For those who want to trade in commodity & still new, No.1 is the best options. For those whose money can hold a lot of margins, No.2 & 3 is the best one I think, as higher return can be seen.

For the timing itself, commodity does consider the seasonal movement a lot in profit gaining. Wrong timing will be a disaster for this type of investment.

Happy Investing^^

Disclaimer ON!!!