Investing in commodities means investing in the raw materials of the Earth.
Commodities can refer to materials that are consumed directly (such as food), natural resources such as agriculture, oil, gas, and precious metals like gold, silver and platinum.
Investing in a commodity is like no other investment. Commodities are often diversified and aren’t easily affected by other investment opportunities. One of the reasons commodity investment is so popular with investors is that they can help you better manage market volatility.
Commodities are sometimes referred to as the ‘fifth asset class’ after cash, bonds, shares, and property.
Gold as a commodity is becoming more mainstream.
Since 2001, investment demand for gold worldwide has grown, on average, 15% per year. This has been driven in part by the advent of new ways to access the market, such as physical gold-backed exchange-traded funds (ETFs), but also by the expansion of the middle class in Asia and a renewed focus on effective risk management following the 2008–2009 financial crisis in Eurpope and the U.S.
Today, gold is more relevant than ever for investors. While central banks in developed markets are moving to normalise monetary policies – leading to higher interest rates.
Gold can play four fundamental roles in a portfolio:
a source of long-term returns
a diversifier that can mitigate losses in times of market stress
a liquid asset with no credit risk that has outperformed fiat currencies
a means to enhance overall portfolio performance.
Gold is not only useful in periods of higher uncertainty. Its price has increased by an average of 10% per year since 1971 when gold began to be freely traded following the collapse of Bretton Woods. Gold’s long-term returns have been comparable to stocks and higher than bonds or commodities. Source: World Gold Council.
''Over the past century, gold has greatly outperformed all major currencies as a means of exchange. This includes instances when major economies defaulted, sending their currencies spiraling down, as well as after the end of the Gold Standard.''
How Oakmount and Partners’ investment experts can help you find the best commodity investing opportunities.
Investing in commodities can be tricky without the right contacts and knowledge of the many industries commodities fall under. Our experienced and knowledgeable investing commodity experts and managers can help you to:
Choose the commodities with the best return on investment (ROI).
The commodities market is complex and many factors can influence returns. Bad weather, for example, can have a big impact on the demand and price of commodities in the agricultural sector.
While the uncertainty of the Brexit vote led to a huge jump in the price of gold. Our team study the international market closely. They will be able to consult on the most rewarding, lowest-risk commodities.
Decide on the type of investment best suited to you.
There are many ways to invest in commodities out there. Including through Exchange traded funds (ETFs), mutual funds, futures contracts, company stocks & IPO's that are closely-aligned to a commodity, and the physical assets.
Each type can be complex for beginners and even more experienced investors. They each have different risk levels, margin requirements, and contract parameters.
We will help you choose the right investment ‘type’ for you via our associates who are an established FCA authorised business.
Choose the right brokerage and determine the size of your investment.
We will help you allocate money to your investment in the most logical and sensible way, and make you aware of any additional fees.
The commodity market can be overwhelmingly complex. So let our team of expert consultants do the hard work for you.
At Oakmount and Partners, we work closely with our colleagues in various sectors of the commodity markets, making sure we are always up-to-date with the latest developments & project insights.
Oakmount and Partners is a truly global business, connected all over the world. If you are an experienced investor, let us help you find and choose the right commodity investment opportunities for you.
Contact Us today and we can get started.
Commodities are just one of the many investment opportunities that we can help you with. Our expert consultants can help you invest in land acquisition & development, commercial & residential properties, IPO's and the energy market.