Do I want to invest in commodities?

How can I start trading physical commodities?

• After years of creating fancy algo strategies on the markets, although I did OK, trading didn't really "feel right". As result of this discontent, I decided that I was going to change my approach and keep it clean. For the last few years I have managed a successful private equity portfolio where I do the following (primarily on the UK market)   -Consume the market into excel -Eyeball/filter  quantitatively to value candidates -Make a decision on price discount rates -Buy -Hold or sell at fair value This has been the most simplest and most successful strategy so far. However, the pull back to fair value can take time. I now wish be in the markets full time, but it needs to be worth while for me. The value stocks can only ever be a pension approach and I definitely cannot rely on value investing to sustain my living unless I had millions to invest.   I have about $70,000 spare cash right now and I want to enter the commodity markets. From the outset, I'm guessing that this is no where near the required cash to start especially as it may not sit with my principles as follows:   1) I only want to trade physical assets. For personal reasons I need to be careful that I am not playing with synthetics, the pricing of which is mathematically complex.    2) I do not wish to trade FX. Only solid real things   3) I do not wish to leverage   My trade off income (i.e. what is required to make it worth while) is about $180k per annum.   Would it make sense for me to start trading commodities?   The reason I mention my equities background is to give you context.   I would be most grateful for sensible direction, preferably from someone who has done this successfully and understands my current train of thought.   Regards

• Answer:

  Umm, so far i havent hear much of investors buying hard comms, because firstly, outlay is huge, logistically speaking you need to pay warehouse rent, pay the transport, tax and insurance. Not really worth holding for investment sake unless you have a 6-7 figure sum.