Investing in Commodities - How to Make Money With Commodities
Commodities are popular investments, but they've plenty of risks involved. There are numerous ways to buy commodities, but buying them directly can be a bad idea. One way to make money with commodities is to get stocks of commodity companies. Several of those firms are members of the S&P 500, while others are not. For example, BHP Group, an Australian firm, extracts various commodities. Barrick Gold Corp., a Toronto-based metals miner, owns interests in a number of international countries and is a gold and copper miner. Purchasing commodities can involve plenty of risk. The price tag on commodities can rise and fall very quickly. While a higher price is fantastic, it may also lead to high production, that may lead to falling prices. In either scenario, the company that may make a commodity at the lowest cost will ultimately be the winner. However, that is not to say that you should completely avoid commodity stocks. Instead, you need to use commodity stocks to diversify your i