01.11.2013 - A beginner's guide to investing in commodities
Commodities are physical assets and include metals such as gold, silver and copper, oil and gas, and so-called ‘soft’ commodities such as wheat, sugar and cocoa beans. ‘Commodities are often referred to as the “fifth” asset class, after the conventional investment asset classes of cash, fixed interest securities, equities and property,’ says Martin Bamford, managing director of IFA Informed Choice. The sector has little correlation with the stock market and currencies, which means if equity markets fall, then the price of commodities won’t necessarily plummet. Bamford adds: ‘They tend to behave differently from these conventional asset classes, which means they can be very useful for the purposes of diversification within an investment portfolio.’........................Full Article: Source