Fri, Jul 25, 2014
A A A
Welcome kbr175@gmail.com
RSS

Commodities Briefing - Categorized | Financial, Investment more

Do commodities belong in your allocation?

Posted on 08 April 2014

The market price of a basket of commodities should increase roughly in line with inflation, but why would there be returns beyond this? While the spot prices of commodities tend to track inflation, futures contracts of commodities have historically delivered positive returns.
John Maynard Keynes laid the foundation of modern thinking on commodity futures markets . He proposed that investors in commodity futures are providing risk capacity to the producers of commodities by allowing them to lock in a fixed price for commodities to be delivered at a future date. In other words, investors in future contracts are essentially insuring commodity producers against a decline in prices in the future………………………………………..Full Article: Source


 Article link

This post was written by:

VRS - who has written 36130 posts on Opalesque Commodities Briefing.


Contact the author

Comments are closed.

July 2014
S M T W T F S
« Jun    
 12345
6789101112
13141516171819
20212223242526
2728293031