Four Easy Ways to Trade the World’s Top Commodities
If you’re looking to add some great potential gains to your portfolio, then consider what commodities can do for you.
Four Commodities… Four Explosive Moves
Want some examples of how explosive commodities can be? Just look at these moves for oil, natural gas, gold and silver over the past year…
Oil Chart: http://www.investmentu.com/images/oil092209chart.gif
Natural Gas Chart: http://www.investmentu.com/images/natgas092209chart.gif
Gold Chart: http://www.investmentu.com/images/gold092209.gif
Silver Chart: http://www.investmentu.com/images/silver092209chart.gif
How would you have liked to hop aboard some of those moves?
Oil: When it started rising in 2007 and topped in 2008, it encompassed a staggering $90,000 move if you’d held just one contract. And the freefall that ended last March brought in an unheard of $110,000 for anyone being bearish.
If you’d held 10 contracts during those moves, you could have seen gains of over $1 million! And that’s just one direction. Double it if you went both ways.
Natural Gas: The move up in the summer of 2007 to the top in 2008 encompassed an $85,000 move, while the drop back down to the lows hit just two weeks ago and saw an even larger haul of $110,000. And this was for holding just one measly little contract. Imagine if you had 100 contracts.
Gold: From the gold chart, you can see the trend higher from 2002. But even if you got onboard as late as 2006, the move could still have netted you $45,000.
Silver: A bullish position taken in 2006 would have scored $60,000 on just one contract. And if you’d hopped on the bear train near the highs in the spring of 2008, you could have pocketed another $65,000 just six months later.
This is some serious money folks.
And the great thing about commodities is that it’s normal for them to cycle from highs to lows and then back again. This gives you opportunities to profit on the way up and the way down. Moreover, it’s in contrast to the stock market, where most moves are biased to the upside.
Three Reasons Why You Should Trade These Four ETFs
Due to the changes that have taken place in the commodities world, regular investors have a chance to take part in the sector without leaving the comfort of a stockbroker.
We’re talking about commodity-related exchange-traded-funds (ETFs), which mimic the moves of the underlying asset. So you can use them to play some of the most popular and active commodity markets.
For example, if you’d like to go for oil, natural gas, gold, and silver, consider these ETFs:
* Oil: United States Oil Fund (NYSE: USO)
* Natural Gas: United States Natural Gas Fund (NYSE: UNG)
* Gold: SPDR Gold Shares (NYSE: GLD)
* Silver: iShares Silver Trust (NYSE: SLV)