Posted on 20 July 2012.
Commodities are a good long term investment because they are an investment in the global growth story. Since the 2008 financial crisis, the world economy has struggled to maintain a period of strong economic growth, with economic growth accelerating and decelerating a number of times. Commodities have generally followed the changes in the rate of world economic growth, generally moving up and down as demand for commodities increased and decreased in conjunction with the strength of the world economy.
With billions of people in the developing world working their way towards higher standards of living, global growth and demand for commodities should be strong in the long term, which is why commodities are a good long term investment. As standards of livings rise, demand for commodities, from oil to corn, rise to meet more demanding lifestyles, which in the long run should cause the price of commodities to rise since supply of commodities is usually limited or only grows slowly.
The following are broad based commodity Exchange Traded Funds (ETFs) that can be purchased via regular brokerage accounts, if one believes that commodities are a good long term investment. The last two provided are leveraged broad based commodity ETFs that are designed to change in price at a two to one (200%) ratio, based on their underlying commodity investments.
The commodity ETF ideas provided above are for broad based commodity investing using ETFs, if an investor believes that commodities are a good long term investment and they want to diversify their investment in commodities to include a broad range of commodities.
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