Currently viewing the tag: "commodities"

investing in silver‘Invest in gold’ that was always the advice given in years gone by. The reasons were obvious. Gold underpinned every currency in the world. There was a limited supply. Gold was desirable. The value went up, even in a recession. However in the modern world, this advice may not be the way to go.

More and more people are turning to trading, and investing in silver when they look for commodities trading. In fact, silver trading is at a similar level, if not slightly above gold. There are numerous good reasons for this, and reasons why you should choose to invest in silver in 2010.

When Gold Goes Up, So Does Silver

Everyone knows that the price of gold is rising significantly, and has been rising for several years. This is due to a variety of reasons, many of which are fairly obvious. The great news for those thinking of trading or investing in silver, is that these two metals are very much linked when it comes to prices. Historical trends have shown that when gold goes up in price, so does silver. So the current increase in gold prices will continue to cause the increase of silver prices. And the good news is, there are plenty of silver penny stocks to watch for potential investments.

Declining Stocks Push Up The Value

For the first time in history, the US has no stockpile of silver. This means that it is buying on the open market. It has used its entire six billion oz stockpile over the last 60 years. This shows the fact that silver stocks are declining worldwide. This pushes the prices up. Stockpiles are going to continue to decrease, and the price is going to continue to increase.

Worldwide Political Instability & Uncertainty

A lot of silver mining is done in countries that are often politically unstable. This can interrupt supplies, and is probably why delivery times on new silver are extremely high. In times of political instability (which there is likely to be increasing amounts of over the coming years), the price of silver will continue to rise.

Price Is Artificially Low

Much of the silver that is traded is traded as paper, never actually being physically transferred between owners. This is achievable because there is a 2-3 month reserve available, and at the moment no problems in supply. As above however, the inventories of silver are rapidly decreasing, with production not keeping up with demand. As these supplies dwindle, but the same amount (if not more) silver is traded, invested in, and ordered, the price is going to skyrocket.

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Current Stance of Crude Oil Prices

Current crude oil stock commodities recently plummeted and concern has become apparent by investors because the outlook of consumers demanding crude oil. The more the U.S spending data increases, the further the crude oil stock plummets. On European morning trade, U.S. delivery of crude oil in August traded at $105.62 per barrel. That’s down 0.21%. Thursday, June 12th, 2014, prices dropped again by 0.62%. It is predicted that the future of crude oil was bound to reach $103.59 per barrel, the same as June 12th, 2014. On Thursday, June 26th, 2014, crude oil futures dipped lower, but the dip can be blamed on the crude oil export values in Iraq and the president Obama’s administration’s plans to lift a ban on two oil companies and allow both to sell internationally. Along with those few factors, the crude oil demand in the U.S have low prospects at the moment, but it’s predicted that the falling prices and stocks are temporary occurrence. A large portion of future crude oil price growth is expected to arrive from India, China and Asia; new emerging oil markets.

investing in crude oil
Reasons to Invest in Crude Oil, Even With Falling Prices

The current falling oil stock may be a sign for investors to dive in and grab the opportunity to buy stock alerts while the prices are lower. These major oil companies have fallen in price: ConocoPhillips (NYSE: COP), Occidental Petroleum (NYSE: OXY), and Chevron (NYSE: CVX). There are a few reasons why investing now would prove beneficial to an investor’s future. Both the U.S. Energy Information Agency and the International Energy Agency predict that the demand for oil should exponentially increase in the next few decades. Instead of seeing the fall as a reason not to purchase an oil stock, investors should see it more as an opportunity to buy.

Strategies to Invest In Crude Oil

Exposing your investment to the price and performance of crude oil without having any association with an oil rig is the best way to make money off of oil, especially with the help of a identifying the best penny stocks from a good trading newsletter. In the United States Oil ETF, you can buy a stock and not have to earn any oil. The fund is based off of the future of the crude oil, contracts of other oils, petroleum fuels, and gases. Oil ETF also has a simple trade because an investor doesn’t have to buy individual stocks. With oil companies such as ETF, you can purchase one stock at once price and therefore save on commissions.

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