Oct 24

Commodities are hot! Any investor who has been investing in commodities  in the last decade must be a happy investor. Just look every where, Cocoa, Coffee, Gold, Tin name it. All you see are runaway prices. Prices hitting new highs now and then.

Commodities Future Price Trend Report

According to an article in FT, Four Reasons Why Commodity Prices will Continue to Rise. Some traders even predict higher prices. Arguments in the article are

First, Not all commodities have seen price hikes

Second, Price hike have been caused by tight markets.

Third, Bankers say their clients’ approach to commodity markets is a long way from the buying frenzy that typically characterises bubbles.

Fourth, It is real shortage, eg Drought in Russia, that has caused price hikes

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Oct 17

The latest information on Soybeans is that demand continues to out pace supply. For commodity traders interested in Soybeans all indications are Soybeans price trend on a Soybeans price chart show an upswing.

Factors Driving the Rise in Soybeans Prices.

  1. Demand remains strong, especially from China
  2. concerns about the future Brazilian harvest, tighter supply.
  3. Rise in price of corn. farmers are using more land for corn because its more profit. This will further reduce Soybeans supplies

Source businessweek article.

With these factors in mind it is easy to understand why many commodity analysts forecast / predict the price of Soybeans will rise.

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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

Gold is hot at the moment. Gold is up a whooping 84% in the last 3 years. The gold investors who so it coming have made some serious money.

There are many reasons as to why gold has risen this high, one is the idea that gold is a safe haven. There is belief that the bailouts of the last 2 years will lead to inflation which causes devaluation of currencies and the only protection against all this is gold.

The idea gold is a safe investment goes back to medieval times. A safe investment means you cant lose your money. But the truth is you can lose your money in gold. What is needed is a change in sentiment and people who bought gold start taking their profit. The gold price trend will be in a reverse gear.

Risks of Investing in Gold

In a Business week interview Susan C. Elser, of Elser Financial Planning Indianapolis gave a good detailed analysis on the risk of gold investment,

Unlike other commodities, gold has few industrial uses. Unlike businesses owned through the stock market, gold earns no profits and doesn’t pay out dividends. Unlike bonds, no one pays interest to holders of gold. And, unlike insured bank deposits, there is no guarantee of your principal investment.

“There is no downside protection on investing in gold,” Elser says.

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Apr 22

According to Halifax, UK Mortgage lender, homes have been a good long-term investment for some people. The average home has almost quadrupled in value, having risen by 273% since 1959 in real terms.

UK Housing Booms

Four big house price booms have occurred in the last 50 years. They were: 1971-73, 1977-80, 1985-89, and 1998-2007.

House Price Rise England, Wales & Scotland

Over the last 50 years, the biggest rise in prices was in greater London, whereas the smallest increase was in Scotland.

Read the full detailed article at BBC Business

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

Nov 28

2009 has to be the year of commodities. If you are a follower of trend following you must have made lots of cash by trend of gold, Silver & Platinum.

Look at this 2009 Price trends of this metals

2009 Gold Price Trend – up 34%

2009 Silver price trend – up 63%

2009 Platinum price trend – up 56%

2009 Palladium price trend – up an impressive 98%

If your mind was focused on the falling prices of real estate & non-starter stock market recoveries, you might have missed this commodities bull.

Should investors jump in? No! I don’t think just because this metal commodities have done well in the past they will continue doing well.

Strategy for making money in Metal commodities.

Whatever goes up, eventually comes down, one strategy is to focus on shorting the metals or sell the futures contract.

Strategy two, only for the seasoned pro, if you know how to play the speculation game keep buying the futures contract.

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