Zenstox shares some common sense on commodities
Commodities are all the raw materials that are used in the production and transportation of goods. The most popular is gold, crude oil, the natural gas. But the whole picture of commodities is far bigger. Let us look at some key commodities, some not-so-popular ones, and understand why commodities can be a great first step for beginners. At the same time, they are an integral part of the portfolio of experienced online investors.
Zenstox covers a wide range of commodities
As an online investor, you can trade one of the most popular commodities on our platform. Such as crude oil, natural gas, gold, silver, aluminum, copper, palladium, or platinum. Our portfolio goes further to cocoa, coffee, corn, wheat, cotton, sugar. Of course, this is not a full list, but you can get the picture. Basically, every source for food, energy for transportation, or key element in the construction of the main goods in our life can lead us to a popular commodity. And this is the key insight to commodities – they are all around us, and everyone can see their value and impact in our lives.
Zenstox’s take on the golden standard in commodities
Gold, for example, has always been a go-to investment when the markets are uncertain, the economy is uncertain, and people are looking for something that will hold its value no matter what happens. In most cases, gold is, as they call it, a safe haven. On the other hand, is another classic on the commodity front, and that is crude oil. It is the living and breathing litmus test of the global economy. It’s connected with the production of plastic goods, and at the same time, it is still the main source of transportation. And transportation makes the world go around. When crude oil prices rise, everything rises because transportation is at the price of almost everything today.
The sweet part of commodities
Not everything in this world revolves around gold or crude oil. Let us have a look at sugar, wheat, coffee, and cocoa, for example. Some will say that investment in such commodities is boring and contains little investment value. But at the same time, big trends are happening in the world of nutrition, for example. Many main food producers are changing their portfolio towards a world where more and more people are thinking about the food they consume and will seek alternatives of the meat, for example. That will change the global picture of supply and demand. On the other hand, all these agricultures are “like a candle in the wind,” and at some places of the Earth, we have climate changes that affect the production of some of the basic ingredients. That is what makes commodities such an interesting asset for online investing.
Commodities sometimes look old-school but here is why Zenstox think they are the future
Take electric vehicles. In 20 years, they will be the dominant factor on the market, and their share will be significantly bigger or even dominant. Although not a new thing, EVs are bringing to the market all types of innovation. The most expensive part is their battery – it contains precious metals such as cobalt and lithium. So, you guessed it, the more this type of vehicle expands its market share, the more valuable the metals are in the production. On the other hand, technical innovations put another commodity as a possible integral part of the EV mix. You guessed it. There are a lot of raw materials with great potential to rise in value.
What is the key factor to profit from commodities with Zenstox?
The key to investing success is to check your hobbies and interests and take out the raw material, which is an integral part of the aviation industry or the sports if you are into it. Do your research, find the raw material that is key for your interests, and continue to follow the news, and be aware of what is happening with the specific market. That could be applied to all symbols, but commodities work in their purest form.
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