Commodities Charts

Although commodities are technically alternative investments, I have broken them out separately on my website because of my focus on this market

  • Commodities are not only an alternative investment, but also an alternative asset
  • Get excited: we are either now, or close to, the next bull-run in commodities
  • I like commodities over the broad market $SPY right now because they are relatively cheaper

Featured Chart

  • I selected $DBC for the chart below because this etf holds a diversified basket of commodities, from energies to metals
  • Generally, it is advised to AVOID commodities etfs and etns because of issues with contango and/ or backwardation
  • These investments are more often for traders than investors
  • Consider managed futures mutual funds, such as $ABYAX from Abbey Capital
  • Or, rather than futures, consider companies with exposure to the commodities you are interested in
  • Examples include $XOM Exxon for Oil, $ADM Archer-Daniels Midland for Corn, $ABX Barrick Gold for Gold, etc.
  • Let me know if you need suggestions or guidance above and beyond the charts below…

Precious Metals

  • From Ancient Coins to Pirate Treasure,
  • Precious Metals are cool
  • Everyone knows precious metals are super hot right now, but I feel precious metals ALWAYS have a place in portfolio diversification
  • Precious metals move differently than base metals
  • Beyond the fear trade, precious metals have MANY industrial uses as well
  • I currently invest in Barrick Gold for Gold, First Majestic for Silver, and Anglo American for Platinum

Base Metals

  • I like investing in base metals as a substitute for the economy
  • “Dr. Copper” is often tracked as a guide for global economic strength
  • Why? Because if economies are doing well, they grow
  • When they grow, they have to expand…
  • Meaning they need the basic building blocks, the base metals…
  • Tin, Aluminum, Copper, Iron Ore, Zinc, Nickel…
  • They have SO MANY industrial uses… it’s crazy
  • Right now I invest in $GLNCY Glencore for Copper, Zinc and Anglo American for Iron Ore, Copper, etc.

Energy

  • I’m just not a huge traditional energies investor
  • I like coal, though…
  • Meaning I like it as an investment… it can’t be phased out as quickly as people want and sentiment for the dirty stuff is at an all time low… or at least it was at the beginning of the year
  • Since then coal $KOL has gone bananas
  • However, from a climate perspective, I’m clearly more a fan of alternative energy…
  • I am an alternative investment explorer, after all
  • Alternative energies include Solar power $TAN, Wind energy $FAN, $LIT for Lithium, $GEX for a little bit of everything…
  • I invest in Glencore $GLNCY and Anglo American $NGLOY for coal exposure
  • Also, Glencore TRADES physical energy commodities like gas and oil

Agriculture

  • Agriculture stocks have been too expensive for me to invest… I’m waiting for a huge pull-back to dip into $ADM Archer-Daniels Midland
  • The largest agricultural commodities trading companies are private, not public companies
  • I like commodities TRADING, so like $ADM over strictly producers
  • As an news tracking tool, I like $DBA for a diversified basket of agricultural commodities
  • $MOO is an interesting etf focused on Agri-business
  • Glencore $GLNCY has exposure to agriculture commodities via its trading division … so I DO have some exposure to agriculture
  • Do you consider tobacco stocks agricultural?
  • What about medical marijuana stocks?
  • I am closely watching marijuana stocks for a time when an opportunity presents itself to pick up some choice producers…
  • In that case, I WOULD consider this allocation an alternative agricultural commodity investment