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Questions tagged [commodities]

For questions related to commodities, commodity trading, etc. For specific trading questions, consider using a specific tag as well, e.g. futures, options, etc.

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0answers
30 views

commodity ETF and tax filing (software vs in-person) [on hold]

From my understanding, owning commodity ETFs has the potential to invoke headache when it comes to filing tax in the US. I wonder if anyone here has the experience of comparing tax-filing software and ...
1
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3answers
47 views

How does producer and manufacturers trade commodity futures?

I get the idea of future trading and its original purpose. However, I cannot quite understand how things work when traders and speculators are involved. For example, lets say a producer actually wants ...
0
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1answer
42 views

CFD trading in commodities, is it safe to hold?

I am looking into trading and created a demo account for this trading website just to mess around a little and try to get some understanding of how it all works. I made an order to open at a set price....
0
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2answers
93 views

Oil Futures and Prices

I am looking at the following chain of oil futures: https://www.cmegroup.com/trading/energy/crude-oil/light-sweet-crude.html Based upon what I am seeing, the market thinks that the crude oil ...
1
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1answer
46 views

What types of derivatives, other than stock options, are available to the retail trader? [closed]

How can a retail trader identify other derivative instruments to trade, and how can one go about doing so?
2
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2answers
128 views

Is commodity stock real ownership of a commodity?

Say wheat is trading at $250 per ton. Does this mean if I own a share I have direct ownership of this ton of wheat? Where is the wheat physically stored? Can I trade the stock to own the wheat and ...
1
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0answers
14 views

How do I compute my taxes on a publicly traded partnership fund, as a Non Resident of US?

I hold units in Powershares DB Commodity Index fund (DBC), and so I've received a K-1 from them detailing their income during the year. I was a US Non-Resident Alien / foreign investor during the ...
1
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1answer
83 views

Margin accounts and futures delivery

I'm trying to understand the market mechanics of futures with delivery. For sake of example, assume 0 interest rates and no cost of carry, and that I bought a futures contract on Jan 1 with Feb 1 ...
0
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1answer
94 views

How much money is fiat money? [closed]

How much or what amount/percentage of all the money in the world actually fiat money? I am not looking for an accurate estimate obviously, but a ball park estimate... even if that was possible. Also ...
1
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3answers
143 views

Which asset classes have a “built-in” long-term growth logic?

My understanding is that stock markets are expected to generate returns above inflation in the long run because companies are paying out dividends and because investors demand compensation for ...
2
votes
1answer
116 views

Why are there futures for some commodities but not others?

Apparently there are 32 commodities for which there are futures available, but I don't understand how these 32 were chosen. Surely these can't be the top 32 most sought-after commodities-- the list ...
0
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2answers
86 views

Product Pricing & fractional pennies

So I have a product where the price is is determined by multiplying a base price by a factor that increases by age. So depending on how old someone is when they buy the product the price is different. ...
5
votes
1answer
160 views

What is the minimum amount of money that is needed to start trading in the London Metal Exchange?

How much money is needed to start trading in the London Metal Exchange (LME)? I am interested in investing in cobalt, lithium, and nickel.
3
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2answers
850 views

What are the ways to invest in cobalt, lithium, and nickel?

How to invest in metals like cobalt, lithium, and nickel? I am not interested in investing in firms that are mining them but in investing in metals directly (via futures or other instruments). ...
5
votes
1answer
119 views

Why do commodities futures prices have “-” in them

I'm trying to understand how commodities futures are priced. I was looking at a chart of ZSF18, and the price is 990-4s. What does that mean?
19
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3answers
3k views

How to buy commodity on exchange (to use)

I was always wondering: How do you buy a commodity (for example oil or aluminum) on an exchange for a "real" purpose. It seems like most resources on the net deal with how to "trade" them in a broker'...
0
votes
2answers
180 views

Where can I find a complete list of commodities? [closed]

I've been trying to educate myself about commodities and futures, and as part of that initiative I'm trying to figure out what commodities there are. I started by examining wikipedia's list, but soon ...
2
votes
3answers
249 views

Cost of carrying precious metals in portfolio

Recently, I have decided to diversify my portfolio into some precious metals. However, I found out that the cost of holding gold and silver is really high. The website I was trying to buy from ...
1
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1answer
105 views

How much money to buy commodities?

Just like for most stock brokers ask for minimum deposits starting at $1000, What is the minimum monetary ammount to invest in commodities markets such as NYMEX, CBOT or CME?
1
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1answer
83 views

Moving average changing value as time move along

For example, on a 15min bar (bar A) right after the close of bar A I read the 200 SMA and 200 EMA at 45.90 and 45.99 respectively. Then a few hours later I go back to that exact same bar (bar A), but ...
6
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3answers
2k views

Is it practical to take actual delivery on a futures contract, and what is the process?

Usually people trade futures speculatively, ie. they buy and sell contracts without actually delivering the goods. However, technically the futures are contracts for delivery of a certain amount of ...
1
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0answers
250 views

Symbol changes of commodity futures on Yahoo Finance

I am programming a stock tracker application with Yahoo's finance API. At the beginning of this month I noticed that the information provided by Yahoo on the commodities were wrong. So I looked up the ...
0
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2answers
120 views

How can I buy shares of oil? I'm told it's done through ETFs. How's that related to oil prices per barrel?

I'm new to investing in the stock market. I'm completely confused about how I can invest in oil. There's no ticker on the stock market as such. I've read online that I can invest in ETFs or ETN. Is ...
6
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1answer
159 views

Would investing in commodities help me build my home?

I am from India and I plan to build a new own home next year. The present price of steel is lower than in past years. Is it worthwhile to buy steel from commodity exchanges now and then switch to ...
1
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2answers
158 views

Is contango a contradiction?

If a market is in contango the futures curve slopes upward as forward prices are higher than today. It is also true that prices must fall as they converge toward the spot price at the time of maturity ...
0
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2answers
92 views

Brent crude vs. USD market value [closed]

correlation != causation, but Brent crude and the USD are completely on twinkie paths Brent Crude USD exchange rate Why is it that when the price of oil drops, not only do you have more money to ...
3
votes
1answer
108 views

Tax consequences of commodity ETF

I have my investments in a mix of 4 ETFs (US, Intl, REIT, and bonds) and I'm thinking about shifting about 5-10% into a commodity ETF. In particular, I'm looking at GSG. I've heard that commodity ...
1
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1answer
64 views

Metal price web site with silver animal on it?

I remember there is (or was) a web site about mining and metals and had trading prices for all the metals, including base metals. The site had a what looked a steel bear or lion on it as a symbol. ...
4
votes
1answer
155 views

Are there commodity streaming stocks outside of precious metal streams?

Companies like Silver Wheaton rely on purchasing precious metal streams. It seems to make sense that, in addition to any precious metal or metal in general, a company could purchase streams for any ...
12
votes
2answers
2k views

What does it mean to invest in potatoes?

There is an amusing thread on Reddit where people discuss what they would do with an unlimited supply of potatoes: http://www.reddit.com/r/AskReddit/comments/37yawp/...
2
votes
1answer
579 views

Why don't commodity ETFs pay dividends?

Is there any obvious reason why commodity ETFs such as GLD, SLV, USO never pay dividends? Is it because the commodity market attracts a lot of speculator/traders/hedgers and not exactly long term ...
2
votes
2answers
681 views

Investing in commodities, pros and cons?

I'm wondering about investment in commodities (through derivatives such as futures for example). What would they offer new in a multi-asset portfolio? Probably some diversification, but what else? (...
1
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2answers
271 views

What is the standard deviation and mean return of oil?

Let's use WTI. I'd like to add oil to my portfolio, and I was wondering how much I should have. I'm in 60-70% index and 40-30% individual value stocks. I want to cut back on my value plays and add ...
3
votes
1answer
185 views

Does anyone know where I can find a free efficient frontier tool, or an informative and legitamate/academic graph of the efficient frontier?

I'd like to build a portfolio based upon modern portfolio theory and I'd like to find a tool I can use to calculate the proper mix of asset classes. Can anyone help with this? I think a good chart/...
3
votes
3answers
2k views

What is the relation between the price of crude and the corresponding ETF

Currently the price of crude oil is hovering around 50$/barrel and the corresponding ETF like USO is around 20$/share. What is the relationship between the price of crude and the price of USO? For a ...
2
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4answers
4k views

Is trading stocks easier than trading commodities?

I've always been told that commodities trading is not really something the individual investor should get involved in. That the stock market is really much "easier" to work with. Now, intuitively, ...
1
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1answer
104 views

Why is there a lack of correlation between the global usage of oil and the price of oil? [closed]

The list below illustrates the world's usage of oil and it's respective average price for that year. Given that the global demand for oil is rather inelastic what explains the large disconnect between ...
1
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0answers
53 views

Why may certificate price be substantially below commodity price?

The Brent Crude oil certificate NL0000202109 currently has a value of ca. 26.50 EUR, whereas the price of the commodity is at 48 USD, a substantial difference. I would expect the certificate's value ...
3
votes
2answers
357 views

How to invest (trade, or speculate) in commodities?

How would one invest in things for example (wheat, oil, gold, silver, platinum) and other commodities? Does E-trade offer a method of doing this?
1
vote
2answers
173 views

Are there any exchanges in which you can place orders that exceed your funds, but which won't get filled when funds run out? [closed]

I'm working with a startup that is building an exchange platform in which a platform-wide currency is exchanged for commodities which are discrete. For the sake of the question, let's say that users ...
1
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3answers
272 views

What are the risks of buying some platinum right now?

Looking at the price of platinum today it is fairly close to gold. http://www.kitco.com/charts/liveplatinum.html http://www.kitco.com/charts/livegold.html I know that platinum is more volatile ...
0
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1answer
87 views

How to buy a Gold ETF in India?

How can I buy a Gold ETF in India? Are they the best way to invest in Gold, and are there any other options?
2
votes
1answer
866 views

What is a “Spread” (In Commodities)

I was reading an article and it states Tightness has returned to the London Metal Exchange (LME) aluminium spreads. The focus point this time around is the December-January spread (CMALZ4-F5),...
-5
votes
3answers
867 views

Is Bitcoin a commodity or a currency [duplicate]

Bitcoin can be classified as a currency as it can be used as an medium of exchange or classified as an commodity given its speculative and volatile nature. What should we classify Bitcoin as ??
2
votes
3answers
846 views

What determines price fluctuation of groceries

I understand that the price of gasoline fluctuates based on the trading of the commodity oil futures. Is it the same for grocery items? i.e Can I expect the price of produce, meat and fish to ...
1
vote
1answer
236 views

TOCOM oil in USD [closed]

Where can TOCOM oil be found to be quoted in USD/bbl? I'd rather not go through the conversion process (at least until goog can mix units like volume and currency) to get the USD/bbl version of ...
4
votes
1answer
979 views

How do I find the value of British Energy Nuclear Power Notes?

I purchased British Energy shares when the company was floated on the stock exchange back in the late 90's. Now, many years on, I have ended up with Nuclear Power notes. I receive a quarterly ...
-2
votes
1answer
460 views

What is the secondary market like for diamond jewelry?

What is the secondary market like for diamond jewelry? How does it compare to the secondary market for gold jewelry? How do secondary market prices for pieces of diamond jewelry move relative to ...
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1answer
170 views

Are there debit cards tied to commodities?

I'm wondering if there are debit cards tied to commodities? For example is there a debit card where I can deposit in Gold, Silver, or cash that is immediately converted to the asset and then use the ...
3
votes
2answers
4k views

How does spot-futures arbitrage work in the gold market?

At the time of writing: According to Kitco, the spot price for gold is about $1240 per ounce. According to CME Group, futures contracts are above that price for many months ahead. Why couldn't I buy ...