Investing in commodities means (indirectly) investing in commodities that are traded on the world market. It is possible to enter the trade of commodities in different ways. Below, we have listed a number of these options for you:
- The purchase of a quantity of a certain resource, for example gold or silver.
- Investing in futures contracts; a contract of supply of a standard quantity of a particular commodity on a specific date in the future.
- Investing via CFD brokers, so that you can invest without having to store the commodity itself.
- The purchase of shares of companies that extract and/or process raw materials.
- Investing in an exchange-traded fund (ETF); a fund that often focuses on several commodities or relevant companies at the same time.