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Put a Hot Commodity in Your Portfolio

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2012 Hot Commodity

Hot CommodityThe next hot commodity could be any of a long list of these goods. However, if you look at recent history, it should be obvious that a much more restricted list of commodities is likely to contain the most successful investment of this year. Here is a list of possible investments to include in your portfolio.

•             Energy

There is no need to argue about whether the world has reached peak oil or not. No one can deny that consumption is up and production does not appear likely to increase significantly in the near future. While this sector of the market has its ups and downs, no one expects to see oil ever return to its lows of just a decade ago.

If you are wary of oil, consider natural gas. New technologies and techniques are making more supplies of this energy source accessible. Many people think that this fuel source will power industry for decades after oil had faded away.

•             Precious Metals

These commodities are constantly stealing the investment headlines. While gold has its ups and downs, it is much like oil at this point. No one expects it to return to the lows of just a few years ago. High prices are here to stay.

•             Food

A couple of critical factors are making various crops and other food sources soar in value. The growing world population is earning more money. People in developing nations that never ate meat 20 years ago now expect it every day due to increased income. Also, the desire for alternatives to fossil fuels has made several industries and nations study the potential of crops as fuel sources.

Keep a Hot Commodity in Your Portfolio

Even if you are not a fan of commodities, diversity is healthy for your portfolio. Do not be afraid to branch out a little. Buy a hot commodity and see if its performance pleases you.

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