Trade over 20 different commodities with the True Fort Broker now. Simply invest in
individual commodities or entire baskets - in savings plans already from €1.
Commodities are natural resources that occur in nature and are processed for various purposes.
The most important characteristics:
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They are an essential part of the economy, as they are needed in the production of various products. |
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Their performance usually shows little correlation with the performance of stocks or bonds. |
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Their prices can be influenced by unpredictable factors such as natural disasters or economic booms. |
Commodities include the following products:
(petroleum)
(gold, silver, platin, palladium)
(coffee, wheat)
(phosphorate, sulphur)
(copper, aluminium)
At Scalable Capital, you can buy stocks of commodity companies or speculate with derivatives on the price development of commodities. Or you can invest with cost-effective exchange traded products (ETPs) in the development of commodity prices.
Stocks
Buying a stock, investors can acquire parts of a company, which produces or trades commodities.
Commodity-ETPs
Commodity ETFs track the price of a basket of selected commodities. |
Commodity ETCs track the performance of a single commodity. |
Derivatives
Derivatives allow speculation on commodity prices.
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Simple access to investments in commodities |
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As easy tradable as stocks and ETFs in the Scalable Broker |
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Lower costs than physical acquisition of commodities |
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Some ETPs are physically backed |
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No physical trading of the underlying commodity |
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Insolvency of the issuer can lead to a substantial loss up to total loss |
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The performance may deviate from that of the underlying |
Investing in commodities can be beneficial due to additional stability & protection against inflation.
Commodity prices are usually little connected to the development of the stock market and can thus contribute to the diversification of the portfolio. Furthermore, commodities have historically often acted as a hedge against inflation, when the price level rises. The chart shows how commodities and equities have performed in the four major inflation outbreaks of the last 150 years.
Source: justETF , April 2023
Easily open a securities account at True Fort Broker and get started.