How To Invest In Commodities and Why?

As the conflict between Russia and Ukraine has intensified so has an interest in investing in certain commodities such as wheat and oil. In this video, I look at why you may want to consider investing in commodities, what drives them, how you can get exposure to them and what to look out for when choosing commodity funds.

Timestamps
00:00 Introduction
00:46 Types of Commodities
01:43 Volatility
02:52 Correlations & Diversification
04:40 Drivers
08:34 Commodity Indices
09:40 Futures or Physical?
11:13 Roll Optimization
13:36 U.K. Funds
17:32 U.S. Funds
20:16 Conclusion

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DISCLAIMER
All information is given for educational purposes and is not financial advice. Ramin does not provide recommendations and is not responsible for investment actions taken by viewers. Figures that are quoted refer to the past and past performance is not a reliable indicator of future results.

#Commodity #Investing #PensionCraft

[charmainemakaleng]

This is great. Simple but yet very informative. Continue the great work.

[chrisf]

Perhaps worth mentioning that although commodities have given very good returns during some periods in history, over the long term (multiple decades) the expected return is flat or even negative. Unlike the stock market, there is no persistent risk premium and you're not rewarded for buy-and-hold. You're basically buying an asset in the hope of flipping it to someone else later.

[Punde]

This is one guy you would trust with your portfolio

[alienzooband]

this was really practical and helpful. thanks!

[ditchgreen]

You've got to be much braver than me to look at commodities funds that have just shot up 40-50% and think now's the time to buy

[marlonherron]

Great Information looking forward for more 👍🏽

[Rahul-fqkf]

Very useful. Learning some much from your videos. I am very thankful to you.

[jackflap]

Disappointed you didn't mention commodity super-cycles at all, i.e. the cycle between rising commodity-prices causing new sources (e.g. mines) being invested in, which in turn increases supply and brings down prices again on a multi-year cycle.

This subverts the buy-and-hold strategy of investing and is an important factor understanding commodity prices (possibly with the exception of precious metals since they are more speculative).

[anthonyvalente]

Did I hear that right… livestock: “Things such as pork bellies”

[kindke]

its too late to invest in commodities I expect most of the rally has already happened

[maltesetony]

Good video. I have found the fund UC15 to be useful.

[suzygarry]

Again Ramin, enjoying a lot your explanations

[tsung-hsiunli]

This video helps a lot for beginner like me. Thanks.

[patrickvaughan]

Excellent overview. Thank you for this

[marcus]

I think it could be another good year for commodities during the current political climate. I have just invested 10% of my portfolio. 😄

[jepp.]

Thanks so much for such a great video.

[lancobear]

Investing in commodities has been a great investment for a few years now. Lower supply and higher demand and higher inflation equals higher commodity prices

[lia]

That was a great information, thanks ! I have some vanguard investments and as far as I know Vanguard UK doesn't have any commodities and is quite limited. Would someone suggest, where to find one of this nice funds with not so much fees? thanks for this great information!

[hichdoedi]

Isn’t this a bit late? Thank you for last year’s video on the commodity super cycle!

[lawrencer]

Fabulous video.
Thank you very much 👍👍👍🥳🥰