Posted on 18 July 2011.
Coffee stocks are an interesting corner of the market. Because they are a smaller portion of the stock exchange, and because not many people know about the potential opportunities that exist in coffee holdings, you can often find a diamond in the rough with a low priced option that is set to grow consistently. There is definitely money to be made in coffee stocks, but you need to know exactly what you are doing. With coffee investments, you need to be knowledgeable about market factors and market conditions. Because coffee growth is mainly based on growth of plants, you would need to make sure that the climate and other weather factors could affect not only the quantity of crops that are available, but also the quantity of the beans that are grown. While there are several ways that the price of coffee stocks could be affected negatively, this commodity has been growing steadily for the past few decades.
There are a few domestic stocks available in the United States, but for the most part, successful coffee stocks are located in South America and a few Eurasian countries. Some of the countries that produce the greatest amount of coffee include Vietnam, Brazil, Indonesia, Colombia, and more. These nations have many companies that could be bought into at relatively low prices, and low risk. Options like BCCI, COFEE, and others are available, and you can find farmers or agricultural businesses located in developing countries that produce coffee and other commodities. Coffee stocks can always be a risky investment, but with the right knowledge about the industry, and a careful examination of weather and market options, you might be able to create additional wealth for you and your family.
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