Investing in commodities

One good way of diversifying a portfolio is to diversify the contents of your portfolio. Whilst many people typically think of cash, stocks/shares and bonds as constituting their portfolio, there are of course other options too.

These include commodities; things like gold, things like sugar: tangible, real things that have been traded for a much larger extent of human history than intangibles that now dominate.

It is quite easy to get access to commodities of a wide range with the introduction of something called ETFs, which stands for exchange traded funds, and allows exposure to lots of different commodities.

There are lots of different options out there: the ability to actually bet on movements in prices, to buy the physical items, to invest in farms that produce certain commodities (like pig bellies for instance).

It is important to note the difference between this and most investment types: there is no interest, or the equivalent in shares of a dividend, so you will buy it purely to hopefully sell it for a profit, or indeed if you sell short, for the price to go down.

Buying Property

Mortgages

Buying Overseas

Tools and Resources

Investing in commodities

House Prices