Do I want to invest in commodities?

Where should I invest my money?

• hello all.. m working in dubai and i want to invest my savings somewhr.. but I m quite confused abt whr to invest.. I think commodities trading is good.. Please advice.

• Answer:

  Commodities can provide healthy investment returns. From gold to oil to food - follow our guides and latest prices to dig up the profits gold bars When it comes to natural resources, oil remains one of the most hunted assets on the planet. Meanwhile the price of gold has soared from $252 per troy ounce in July 1999 to recent highs of nearly $1,600, making it an important part of a diverse investment portfolio. Historically, agriculture has not been the easiest place for small investors to access, but this is fast changing. Recently, wheat, grain, soybeans, corn and even livestock have become such a hot topic that investment houses and fund providers have been launching investment vehicles to satisfy investors' appetite for food related investing. A popular way to invest in commodities is through a futures contract, which is an agreement to buy or sell in the future a specific quantity of a commodity at a specific price.Futures are available on commodities such as crude oil, gold and natural gas, as well as agricultural products such as cattle or corn. disadvantages: It's a pure play on the underlying commodity. Leverage allows for big profits if you are on the right side of the trade. Minimum-deposit accounts control full-size contracts you would normally not be able to afford. You can go long or short easily. Disadvantages: The futures markets can be very volatile and direct investment in these markets can be very risky, especially for inexperienced investors. Leverage magnifies both gains and losses. A trade can go against you quickly and you could lose your initial deposit and more before you are able to close your position.