I am convinced that the price of wheat and uranium will go up.
But I do not have access to any futures markets. So how can I invest in these two particular commodities ?
Do I have to buy stocks of actual farming companies and mine companies ? The problem by buying stocks, and not the commodities themselves, is that a higher commodity prices will not always translate to a higher stock price for the companies that produce these commodities in the first place.
Are there other alternatives than buying these companies' stocks?
Hope that someone can help.
2006-08-30 03:22:25 · 4 answers · asked by puny-ouny 1 in Business & Finance ➔ Investing
First of all, why wouldn't you have access to the futures markets?
I'm presuming you must live outside of the US, else, you'd probably be able to open an acct with either optionsxpress or lind waldock or someone similar.
Anyways, we'll assume you can't. for uranium, there are several uranium stocks that you can invest in. CCJ is the largest in the US.
For Wheat, there are a few companies, commodities are the best way to go there.
At the moment, there's not an equivalent streettracks stock that you can trade for either. Too bad you weren't interested in Oil (USO) or gold (GLD) or silvre (SLV), those are all NEW stocks that just about mirror the price of the underlying commodity.
Check amex.com, and iholders.com, and do a google search on streettracks. You never know when new ETF will be coming out exactly in what you're looking for!
Hope that helps!
2006-09-05 11:55:50 · answer #1 · answered by Yada Yada Yada 7 · 1⤊ 0⤋
btw...ETF = Exchange Traded Fund. You should also be able to find mutual fund firms who offer sector wide exposure - hence avoiding pitfall of an individual stock tanking - but giving you broader exposure to commodities.
You could also consider tracker funds (against the whole market) in countries which have high commodity correlations (e.g. Australia, Canada, Russia etc).
2006-08-30 07:31:00 · answer #2 · answered by Ouseman 2 · 0⤊ 0⤋
Well, you can certainly trade wheat futures with a commodity broker. I do all my commodity trading with United Futures Trading - http://www.unitedfutures.com
I have never heard of a Uranium futures contract however. I know they have energy futures contract such as crude oil and gasoline futures.
2006-09-06 13:22:02 · answer #3 · answered by Rick S 1 · 0⤊ 0⤋
Research static funds or "ETF's" as they are also called.
2006-08-30 03:46:20 · answer #4 · answered by gjjr2004 3 · 0⤊ 0⤋