How many of you see the value of adding commodities to a diversified asset allocation decision?

Question

Tell me yes or no?

And say why you think it's a good idea or bad...

Answer 1

Personally I don't see it as giving you an edge over any other type of investment strategy. They're all going to give you the same results.

Answer 2

Yes, I'm bought gold like crazy end of June, already planning on selling probably mid Jan!

It is a valid asset class. As long as you invest in the product itself, not the companies that are producing/manipulating it. Inflation only takes a little off the return. Study how to be efficient.

Answer 3

Seasoned investors allocate part of their portfolio to speculative investments, which might include commodities, futures, options and currencies.

Investing in this type of trading is highly speculative, there is the risk of loss of capital. The best way to participate in these markets is to allocate a small percentage of your portfolio. This percentage will depend on how much you can afford to risk, and the return you expect for your money.

Some investors hire money managers to help them with this venture, and either pay an assets under management fee, or a fee based on performance.

If it is a good idea or bad, it all depends on your present situation, and expectations for future cash flow. Consult first with an independent financial advisor.

Good luck!

- http://jsforex.blogspot.com

Answer 4

  With commodities heading lower, I'd delay buying any right now. Economies around the world are following the US: slowing. Thus commodities are also going lower. Wait 'til the economies start to pick back up.