Dec 13

The major reason why you should invest in a Wheat ETF is, wheat is one of the most popular cereal commodity grown into the Global. It is only comparable to rice and maize in its quantity and more than 6000000 tons are harvested every year .

The only wheat only ETF that I know is Teucrium Wheat Fund. This ETF is the only one that tracks the price of wheat. The other option of investing in a Wheat ETF is buying ETFs that have wheat plus other commodities in their basket. These include some of the big names in agricultural commodities etfs:-

  • ADZ – PowerShares DB Agriculture Short ETN
  • AGA – PowerShares DB Agriculture Double Short ETN
  • AGF – PowerShares DB Agriculture Long ETN
  • BARN – Global X Farming ETF
  • CRBA – Jefferies TR/J CRB Global Agriculture Equity Index ETF
  • DAD – PowerShares DB Agirculture Double Short ETF
  • DAG – PowerShares DB Agriculture Double Long

written by Constantine Njeru \\ tags: , , , , , , , , , , , ,

Jul 11

I was watching Jim Roger interview on CNBC, and the famed commodity investor disclosed where he is putting his money.

Jim Rogers Long Positions

Jim Rogers is long commodities and long US dollar

Jim Rogers short positions

Jim Rogers is short long dated US treasuries, short emerging markets, short US technology and short one major US bank.

Watch the whole interview at CNBC.

written by Constantine Njeru \\ tags: , , , , , , , , , ,

May 09

Last week price drop in oil seemed to have hit, large hedge funds, hard. Clive capital a London based commodity hedge funds has come out and confessed they incurred losses of $4oom.

According to a report seen by Ft of UK, the management said it was at loss to explain what had caused oil prices to tumble so fast.

The scale of this loss demonstrates that even the savviest investors are not immune loss. Investors should take note of that footnote at the end and bottom of investment promotion brochures, Past Performance is not an indicator of future performance!

written by Constantine Njeru \\ tags: , , , , , , , , , , , ,

Aug 29

Novagold resources is a Vancouver based mining company. The interesting thing about this mining company is the heavy hitters who have bet their money in it.

According to an article in businessweek. Some of the famous billionaire commodity investors who have invested their money in it are, George Soros, John Paulson and  Thomas Kaplan.

written by Constantine Njeru \\ tags: , , , , , , , , , , , , ,

May 19

Gold is on the rise and when a commodity is this hot it is good to revisit its past. On this chart you can see how the price of gold has trended from 1970s – 1980s – 1990s – year 2000 and upto 2010.

written by Constantine Njeru \\ tags: , , , , , , , , , ,

May 15

Its never easy for a small investor to invest in Gold. There are practical problems with owning gold. It’s heavy, and not easy for the average investor to buy, sell, ship, and store. Gold involves a lot of transactional costs.

Invest in Gold ETF

One easier way for retail investors or small investor can get exposure to gold is through exchange-traded funds. The exchange traded fund is a trading platform where investors can invest in funds that track a particular investment eg. gold, oil, emerging markets etc. Instead of directly buying a commodity, you buy piece of the fund which in turns invests directly into the commodity.

For example, the SPDR Gold Trust holds actual gold bullion. The PowerShares DB Gold Fund holds futures contracts linked to the price of gold, and the Market Vectors Gold Miners ETF holds stock in gold mining companies.

written by Constantine Njeru \\ tags: , , , , , , , , , , , , , , , , , , ,

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