Why You Need to Invest in Commodities Today

Stay on top of risk. Protect your wealth.

For years investors have grown their portfolio using traditional investment classes such as stocks and bonds. Some are concerned about putting all of their eggs in one basket. What happens when those markets fail to perform? Portfolios with only a single asset class are open to various kinds of risk. Any investment advisor will tell you to diversify your portfolio. An alternative investment is a perfect way to protect a portfolio from the hit from failing markets.

An investment is considered ‘alternative’ when it does not fall into traditional asset classes. These are typically held by institutional investors and high net-worth individuals. There are many benefits of purchasing alternative investments.

In this article, we will cover why you need to consider an investment in commodities. Contact Goldbach Capital today to find out which commodity will help you diversify your portfolio.

Investing in Commodities

A commodity is a basic good that is a raw material or agricultural product that can be bought or sold, this includes metals, water, energy, and food products like corn and grain. Investing in commodities can involve placing money into raw materials that are either consumed directly, such as a food good or material that is used to make other products, like gold and other precious metals. Investing in energy sources and natural resources are considered commodities as well.
Commodities are a great way to diversify a portfolio, especially for those who do not know where to begin. Raw materials are a nearly sure-fire way to protect yourself against inflation. Trading commodities has a long history, much longer than stocks and bonds. The economies of ancient civilizations were based on trading materials. Today commodities can be a great way for investors to grow their portfolio or protect themselves from inflation.

Commodities To Invest In

There are many different kinds of commodities individuals can invest in. Below are just some of the many options.

Water
Water is a fantastic commodity to invest in because of its abundance worldwide. There is nothing out there that does what water does. It is also not a product that can be manufactured or replicated. It is also needed by everybody to survive. For this reason, water is the most essential commodity in the world. Water scarcity is a theme found all over the world that involves both climate change and demographics.
Because the population is growing globally, and water use grows along with it, the supply of water is shrinking. Investing in water should be on the radar of many global investors looking for a new investment opportunity.
Companies all over the world dedicate their time and resources to water purification, transportation, storing, and bottling. The water sector is becoming increasingly recognized all over the globe.
Water purification, desalination, and sustainability is an important and profitable business to tap into. Governments are allocating billions of dollars a year to environmental protection to clean up polluted waters.

Precious and base metals
An investment in precious metals withstand the test of time, and many smart investors continue to keep gold in their portfolios. For years, investors have purchased precious metals for diversification.
One of the most essential uses for precious metals is diversification. The trick to diversification is finding investments that are not correlated with one another. Investors still use precious metals to hedge their funds as a safe haven and reducing volatility and risk. Popular precious metals include gold, silver, and platinum.
Metal commodities that are not considered precious, like aluminum, zinc, and copper are often used in the production of commercial and industrial products. These are known as base metals.

Energy
The energy sector is so large, making for endless opportunities to invest, ranging from oil and gas companies to renewable power providers. Oil, like water, is a vital necessity to people all over the world. Gasoline prices are high and continue to rise as demand increases.
The size of the market is the biggest draw to the sector. Another draw is the future growth of energy. The International Energy Agency believes the energy sector will increase by more than 30% by 2035, thanks to growing economies like China and India. These countries are set to account for two-thirds of that growth.
Oil does not just produce gasoline. A lot of plastic products, medicines, linoleum, shingles, cosmetics, and other products, are made from petroleum.

How to Invest in Commodities

There are several different ways investors can engage in commodity investing such as in the physical raw form or using future contracts of ETPs that track a commodity index. Mutual funds are also a viable way to invest in commodities. Buying shares of a company that profits from the value of a natural resource is a great way to invest in a commodity.

Invest in Commodities with Guidance

Find out if commodities are right for you. There is no perfect diversification plan for everyone. That’s your global investor partner with Alpenrose.
Goldbach Capital has the knowledge and resources to become the trusted partner of wealthy families, offering a comprehensive range of services, by combining proprietary expertise with an external pool of first-class advisors. Each client can decide which modules he wants to engage Goldbach Capital on. Thanks to its efficient and cost-effective solutions, Goldbach Capital is a credible alternative to existing or projected in-house organizations.
With life simplification, cost-cutting, and asset protection, growth, and monitoring at the front of our team’s mind, Goldbach Capital integrates your family’s vision and core values to create the wealth management plan for you.

Want more information about this subject?

Contact us below: