COMMODITIES

TRADING TRENDS
2022-2023
Sponsored by
“The exchangeable value
of all commodities, rises
as the difficulties of their
production increase.”
David Ricardo

GOLD, OTHER PRECIOUS METALS,

3
AND COMMODITIES
CONTENT
TABLE OF

ADVANTAGES OF TRADING GOLD 4

HISTORIC PERFORMANCE OF
5
COMMODITIES

COMMODITY TRENDS 6

COMMODITY MARKET OUTLOOK 2023

7
AND BEYOND

WINNING COMMODITY STRATEGIES 8

CONCLUSION 10
GOLD, OTHER PRECIOUS METALS,
AND COMMODITIES

Trading gold, precious metals, and other commodities is an effective way to diversify a
portfolio while also earning some pretty unique benefits. Gold in particular is one of the
best possible investments someone can make; it is one of the most popular financial
transactions worldwide. These days, trading gold, precious metals, and other commodities
can be done entirely online, or you can choose to hold onto your metals physically if you
prefer.

Commodities refer to trades in raw or primary products instead of manufactured products.

They may be hard commodities, such as metals, rubber, gas, and oil, or they may be soft
commodities, such as agricultural products. Commodities can be traded in physical form
or in derivatives, allowing for flexibility for investors.

Some commodities, especially precious metals, tend to be thought of as a hedge against

inflation due to their steady growth.

Commodities
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 ADVANTAGES OF TRADING GOLD

Trading gold often involves either purchasing physical gold or buying gold stocks
or futures. Gold stocks are publicly-traded gold-focused investments that create an
indirect path to investment if you either want to avoid physical gold or can’t afford it.
Some of the most compelling advantages to trading gold include the following:

GOLD HOLDS ITS VALUE GOLD IS SAFE

There are limited gold reserves in the world, Gold is considered a safe haven, meaning it is an asset
meaning this precious metal is a non-renewable that is capable of withstanding markets that are being
resource. That means that as demand grows, so disrupted by political, economic, or other crises. Some
does the price, as there is only ever a finite amount world stocks may fall during times of crisis, but gold
of gold available on the planet. New deposits aren’t tends to increase. That is because investors view gold as
discovered frequently and the longer it takes to a safe haven, and when markets get particularly volatile,
increase the gold reserves, the more the price of investors shift to gold, pushing prices up higher.
gold tends to go up. By investing some free capital
in gold, you may be able to preserve its value.

GOLD PROTECTS AGAINST GOLD DIVERSIFIES

INFLATION PORTFOLIOS
Though gold tends to grow in value relatively slowly, Another compelling reason to invest in gold is that
it does outpace inflation’s devaluation of money. it diversifies portfolios. Invested capital should be
Even when gold drops in value on occasion, it tends distributed to lessen the risk of loss as much as possible.
to go back up. The same cannot be said about most This means that money should be divided up among
other currencies, which see inflation devaluing them assets that balance each other out. Gold tends to balance
over time. out the stock market, and when stock markets crash, the
price of gold tends to go up.

Commodities
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HISTORIC
PERFORMANCE OF “Gold, on the contrary, though
of little use compared with air or
COMMODITIES water, will exchange for a great
quantity of other goods.”
David Ricardo

Commodities tend to be one of the more

volatile markets to invest in. However, that
volatility creates a sort of safe haven for
investors willing to dip their feet in. This is
because prices tend to rise during times when
inflation accelerates. As a result, commodities
tend to protect against inflation.

Performance can vary from commodity to

commodity. However, in recent years, gold
and silver have dominated the charts. In the
last 20 years, gold has gone up over $1400/
ounce in price, or an increase of an estimated
466%. Silver has seen similar growth, though
not quite to the same degree. Silver is up
$15.89, or 338% over the last 20 years.

Another commodity to consider is crude oil. In 2020, the average closing price was $39.68. In 2022, the
average closing price is $100.99. As inflation has worsened, the closing price has increased, following
those safe haven tendencies. Those who invested in oil early when it started rising likely profited
significantly.

This trend can be seen across many different commodities, echoing the sentiment that commodity
markets offer a safe haven for investors. And 2023 should not be any different.

Commodities
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 COMMODITY TRENDS
Prices of commodities are impacted by not only what is happening in the world, but also
by what your fellow investors choose to do. If everyone decides to invest in a commodity
at the same time, it is likely to go up in value due to supply and demand. Conversely, a
massive selloff can force prices down. Check out these trends in commodity investment.

PRECIOUS METALS

Gold, silver, and platinum all share a few things in common: They have high economic
value and hedge against inflation. While the price of metals can fluctuate, it is a long
term hedge against inflation. Both physical and paper precious metals are popular
trends in commodity investments.

INDUSTRIAL METALS

Industrial metals include the likes of aluminum and copper, and they tend to hold
decent price appreciation as well. Copper in particular is expected to double over
the next several years due to an increased demand. Copper is necessary for homes,
electric vehicles, solar power collectors, and cookware, making it in high demand for
the foreseeable future.

GRAINS AND MEATS

As food shortages continue, investing in food products becomes a safe way to grow
profits. Investing in corn, oats, wheat, soybeans, cattle, pigs, butter, and milk can all
be effective ways to beat out inflation, especially as prices soar at the grocery store.

ENERGIES

Energies, such as crude oil, gasoline, ethanol, and natural gas are in high demand,
especially with the current Ukrainian war situation leading to massive sanctions on
Russian exports of oil. These can be easy places to profit if you choose to invest.

Commodities
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COMMODITY MARKET OUTLOOK
2023 AND BEYOND
The outlook for the commodity market is excellent. As inflation continues to soar, commodity investors
will see their profits increase as prices rise. Due to the war in Ukraine disrupting many commodities, it is
predicted that there will be a significant increase from 2022 to 2023.

Energy prices are likely to increase about 20% with wheat prices skyrocketing over 40%. Expect prices to
remain high for the next year or two, bare minimum. This is an excellent place to invest while you still can
before prices continue to rise.

Commodities
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WINNING COMMODITY STRATEGIES
The three most common strategies for investing in Many brokers allow for leverage which can amplify
commodities is to either invest in futures, trading your position size which can aid in profits – but
a commodities contract such as a CFD or outright also amplify losses as well.
buying physical commodities, depending on what
the investment is. Each of these come with their Buying Physical Commodities
own risks and rewards. Some people prefer to own physical commodities,
such as in the form of precious metals. Not
Buying Futures all physical commodities are very practical, but
One of the popular forms of investment in keeping precious metals in physical form is a great
commodities is buying futures. These are a high way to hedge against inflation.
risk, high-reward form of speculation, which
can push some people away. Futures allow you Gold and silver bullion can be bought online, at
to leverage your investments to either make coin shops, or at pawn shops. By watching closely
for massive profits or losses. As discussed and making sure that you are getting as close to
earlier, these sorts of investments hold a lot of a spot price as possible, you can increase your
risk. In addition there is a large barrier of entry to chance of profit.
purchase commodity contracts as the cost for such
contracts can be quite high for the normal investor. Of course, owning your metals physically means
you run the risk of them being stolen or damaged,
Trading a CFD so store them carefully.
Trading commodity Contract for Difference or CFD
is an easy way for investors to take part in the
price of Future Contracts with smaller entry prices.
In addition to low costs to enter contracts you
can also buy and sell contracts allowing you to
speculate on the rise or fall of commodity prices..

Commodities
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GUIDE
TRADE
GOLD WITH
AS LITTLE
AS $50

Deposit Bonus
for New Accounts

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CONCLUSION
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Commodities
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