Commodity Market: Different Types of Commodities Which Are Worth Investing
New investors come up with a wide range of questions before investing in the commodity market. Questions are like; do I need to diversify my investment portfolio? Should I invest in the commodity market or in some other places? Well, marketing experts working with Shyam Advisory love to harp on the fact that there is nothing wrong to ask questions about the commodity market. Asking questions helps to clarify doubts. This, in turn, would help new investors to remain aware of the present market scenario and make informed decisions on investments.
Savvy Investors Even Take Helps
An investment is a risky affair. Calculative steps need to be taken. Without calculated steps, the chance of suffering losses might increase. So those who are new to the investment sector and planning to invest in the commodity market should tread this path carefully. It would be better if they take the help of professional advisors and marketing experts.
Why? It’s pretty simple.
Financial planners and advisors have an in-depth knowledge of the market. The advisors monitor the market every day and based on the market movement provide certain commodity tips to new investors.
As new investors might not know about the commodity market very well; however, with the help of expert advice they would know the right investment options for them.
Well, the job of the professional advisory team is to diminish the investment risks for the investors
Commodity Market: A Great Place for Diversifying the Portfolio
There is no denying that there are a lot of investment channels in the market, such as mutual funds to bonds to currencies, and more. However, there is another investment option that’s worth looking into – the commodity market.
A study conducted by MCX advisory professionals revealed that commodity trading is a great way to diversify the portfolio of investors.
What Are Commodities?
Well, commodities are basic raw materials that can be consumed either directly; or it can be used as an ingredient for the production of another product. Similarly, commodities are used for trading, i.e. for interchanging with goods of a similar kind.
A wide range of commodity investments is available for investors and traders. New investors before taking the plunge into the commodity market investment can take the help of a marketing expert team like Shyam Advisory. The marketing analyst team works round the clock to offer their esteemed clients a complete overview of the commodities that are worth investing in.
If you are an investor and willing to invest in the commodity market, you must know that commodity trading is the ideal approach to keep commodities protected from inflation.
Any investor shouldn’t just jump and invest in this market. They should always follow the commodity tips offered by the professionals before making any move. Doing so would make their investment secured even in times of market volatility.
New investors might not have a proper idea about the commodity market. One important factor that plays a crucial role in the commodity market is supply and demand. Supply impacts demand; similarly, low supply increases the price of the commodity.
Similarly, the pricing of the commodity also gets affected due to technological advancement and global economic development. Even trade decisions between two countries can increase the chance of liquidity and volatility. For this reason, taking the guidance of professional market advisors working with Shyam Advisory is crucial. They would guide investors with proper tips so that trading could be done with caution.
One thing which a smart investor needs to keep in mind is that the commodity market gets affected by geopolitics. Hence, an investor should carefully follow the market forecast. They can seek help from professional advisors regarding commodity market tips. They can even ask about the best commodities to invest in 2020. If any new investor follows the advice regarding the MCX market properly, they would be greatly benefited.
Sounds intriguing? Doesn’t it?
Without further ado, let’s take a look into the various types of commodities that are usually considered best for trading.
Two Types of Commodity Market
In India, one gets to see two types of commodity markets, i.e. hard commodity and soft commodity.
Metals and crude oil fall under the hard commodity category; whereas, agricultural commodities, such as wheat, corn, soybean, cotton, etc. fall under soft commodities.
• Bullion: Gold, Silver
• Energy: Crude Oil, Natural Gas
• Base Metals: Aluminum, Nickel, Copper, Zinc, Brass, Lead
• Agricultural Commodity: Black Pepper, Castor Seed, Cotton, Crude Palm Oil, etc.
Investing in the MCX market should be done after scrutinizing the market post-lockdown and taking into consideration some useful MCX tips from professional market advisors.
• Cereals and Pulses: Barley, Wheat, Chana, Maize Kharif, and so on.
• Fibres: Guar seeds, Guar Gum
• Oil and Oil Seeds: Castor Seed, Soybean, Cotton Seed Oil, Mustard Seed, Refined Soya Oil, etc.
• Spices: Pepper, Jeera, Turmeric, Coriander
Seasoned investors might not need any pro-MCX tips regarding their investment choices. But for new investors, these tips could turn valuable. They would know about the most traded commodities and also which commodity holds a good future in the market.
Right investment decisions are made only when an investor sticks to the NCDEX tips and favorable suggestions of market analysts. This prevents the investors from any financial crisis.
To help investors in making some wise investments in the commodity market, here are some investment ideas.
1. Crude Oil
Investors before investing in the energy sector of the commodity market should remain updated about the market conditions. An economic downturn or production issues might affect the price of crude oil. A small crude oil trading tips for investors looking to invest in crude oil is that by investing in this sector would allow them to gain 5-10 times more the invested amount; however, there are also certain risks with it. They can face heavy losses if the market condition is bad. Hence, one should invest in this market very carefully.
According to market analysts working with Shyam Advisory, copper would be a great investment option for a long term basis. It’s a versatile commodity. It’s used in a wide number of things, such as for wiring, construction works like roofing, making motors, and so on. China is the biggest consumer of copper. However, the COVID-19 pandemic caused the price of this metal to suffer a setback. Still, it remains a good metal for investing.
Well, investors can buy it for a cheap rate and sell them when the situation improves. The price of this metal would surely increase, as demand is high but the supply is facing a shortfall. Hence, new investors shouldn’t hastily sell the stocks of copper companies; rather, they should follow the commodity market tips and wait for the right moment to sell it.
Gold is always a safe haven for investment. It is not only used in jewelry making, but it’s also used for trading by central banks. Investors’ trade-in gold stock, as gold trading, is regarded to be safe. After all, it’s not likely to be influenced by inflation.
If the year 2019 is taken into consideration, it was the best year for gold. The price of this yellow-metal in the bullion market reached Rs 34,690 to RS 35,795.
Market analysts considered it to be a perfect case for the investors. Even in 2020, gold remains the best commodity for investment. Some investors after following the commodity tips from our seasoned market advisories were greatly benefitted from gold investments.
The gold market is not covered with any kind of uncertainty. Similarly, geopolitical uncertainty won’t diminish the need for this metal in the Middle East. This metal is ideal to act as a cushion during inflation.
In case, you are willing to invest in the gold commodity market, considering investing in gold coins or gold bullion bars. Apart from investing in these physical options, gold ETFs are also available. Investors should do their homework before making any investment. A good idea for investors is to follow the suggestion provided by commodity experts regarding the gold market. Thereby, it would help investors to make the right investment decision.
• Base Metals
Apart from gold, copper, and silver, investors can invest their money in some base metals also. Industrial and commercial applications widely use base metals. Some metals like zinc or aluminum are worth the investment as it’s not costly and also supply is pretty stable. The best way to invest is to buy stocks of base metal companies. For more suggestions about best base metal companies, working with MCX advisory professionals is mandatory.
• Agriculture Commodities
Agriculture commodities, like soybean, corn, wheat, coffee, cotton, turmeric, chana, sugar are great for investment. However, this sector gets very volatile, especially during the summer months and also due to any changes in the weather. Investors would be able to gain good profit only if the price of the agricultural commodities increases.
However, the present COVID-19 crisis also created a huge impact on agricultural commodities. With the whole of India went under complete lockdown for two months or so, the production process came to a halt. So the agriculture production throughout India is very dim. The scenario is the same for the textile industry. Most of the factories were closed during the lockdown. Hence, the agriculture commodity market holds a bearish outlook.
Traders planning to invest in Turmeric or Chana or Soybean should be on the lookout for the NCDEX tips.
NCDEX Chana Tips
Marketing professionals can guide traders on whether investing in Chana when it’s above 4100 would be good or not. Professional advisors through NCDEX Chana tips can offer a proper trading view to traders about the right moment to sell it.
NCDEX Soybean Tips
The price of soybean is high, but the market suggests the price would drop in the future. An important NCDEX Soybean Tips from the market analysts for traders is to avoid trading on this commodity for a long-term.
Is this the right time to invest in the commodity market? Novice analysts might prevent new investors from making any investment. But a seasoned market analyst working with Shyam Advisory will first study the market, before suggesting clients to invest on any commodities. Market advisory professionals being associated with the commodity market for a long time, they know it’s very volatile. Hence, they won’t just provide tips just blindly. All tips and advice are provided after carrying out a proper analysis of the market. This is done to ensure that a client makes some profitable gains and expand their wealth.