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Инвестиции в сырьевые товары: особенности, стратегии, риски

Home » blog » Инвестиции в сырьевые товары: особенности, стратегии, риски

In conditions of economic instability, currency depreciation, and geopolitical conflicts, investors’ attention is increasingly shifting towards tangible assets. One such segment is investments in commodities, which remain popular tools for capital protection, profit generation, and portfolio diversification. Commodity markets not only allow protection against inflation but also enable the development of a growth strategy, leveraging the cyclical nature of the global economy.

What are commodities and how is their market structured?

Commodities refer to physical assets extracted or produced for subsequent processing or industrial use. These include oil, gas, metals, grains, coffee, cocoa, and other agricultural products. The market operates through supply contracts, futures agreements, and spot transactions, with major operations conducted through exchanges such as NYMEX, LME, ICE, and others.

The heightened volatility in the sector provides both speculative opportunities and the threat of significant losses. Therefore, investments in commodities require a systematic approach, including analysis of macroeconomics, geopolitics, and seasonality.

Types of commodities: classification by categories

To understand the trading structure, it is important to categorize commodities. Below is a list outlining the main types:

  • energy resources – oil, natural gas, coal;
  • precious and industrial metals – gold, silver, platinum, copper;
  • agricultural products – wheat, corn, soybeans, cotton;
  • livestock – meat, dairy products, livestock;
  • strategic materials – uranium, lithium, rare earth elements.

Each category has unique demand drivers, seasonality, and pricing characteristics. This is why investments in commodities must consider the specific nature of each asset and its position in the global economy.

Advantages of investing in commodities

The sector offers significant advantages for long-term investors. Below is a list of benefits that make investments in commodities part of a strategic portfolio:

  • inflation hedging;
  • high correlation with the real economy;
  • availability of liquid instruments (futures, ETFs, mining company stocks);
  • earning potential with demand growth;
  • independence from the banking sector;
  • resilience to currency fluctuations;
  • low correlation with stock assets;
  • predictable seasonality in agricultural products;
  • investment opportunities through options and index solutions;
  • access to a global market with high liquidity.

An investor who understands cycles can benefit from short-term fluctuations or build a stable long-term asset in the portfolio.

How to invest in commodities: tools and approaches

There are several ways to enter this market. The most direct approach is trading futures, where a contract is bought or sold with a fixed execution date. An alternative is options, which grant the right but not the obligation to enter a transaction. Beginners often use ETFs reflecting the dynamics of the underlying asset or purchase shares of mining companies sensitive to commodity price changes.

The choice depends on the level of knowledge, acceptable risk tolerance, desired investment horizon, and available capital. Investments in commodities are not recommended without an understanding of market mechanisms and basic trading principles.

Investment strategies in the sector

A successful model is always built on fundamental and technical principles. Investment strategies can vary in horizon, activity level, and management approach. Popular approaches include:

  • speculative day trading on volatility;
  • holding futures contracts for positions;
  • purchasing ETFs on precious metals as part of a defensive portfolio;
  • investing in oil and gas or metallurgical company stocks;
  • using options for loss control;
  • diversifying between commodity categories;
  • trading seasonal patterns in the agricultural sector;
  • combining futures and spot investments;
  • long-term holding of gold as a hedging asset;
  • applying technical analysis on daily charts.

The choice of strategy depends on goals – capital growth, inflation protection, or speculative income. All investments in commodities require testing and calculation of acceptable loss levels.

Risks when dealing with assets

Despite the high profit potential, investments in this sector come with a significant level of uncertainty. Before opening a position, it is important to be aware of all possible risks. Investors need to consider the impact of political decisions on sharp price fluctuations, as well as potential market manipulation by major participants.

Additional threats include imbalances between supply and demand, high cost of holding futures contracts, and currency fluctuations, especially in international transactions.

Understanding threats and managing them through diversification, prudent risk management, and continuous monitoring are particularly important when it comes to investments in commodities.

Earning on commodities: is stable income possible?

The stability of income depends on the tactics used by the investor. Working with gold or oil in the long term provides moderate income with low correlation to indices. Aggressive trading of gas or metals futures allows for quick results but requires skills.

A professional approach to risk management, understanding market mechanisms, and clear goals enable earning to be systematic rather than random. However, stability is only possible with a clear structure and a well-thought-out investment strategy.

Investments in commodities as part of a portfolio

In modern conditions, investments in physical assets serve as insurance against instability. Investments in commodities complement traditional asset classes: stocks, bonds, real estate. Due to low correlation with other segments, such assets increase portfolio stability.

The commodity component can range from 10 to 30% depending on goals and risk tolerance. Regular review of the structure, analysis of cycles, and dynamic balancing make such investments part of systematic financial planning.

Conclusion

The answer to whether to form investments in commodities is unequivocal: with knowledge, discipline, and strategy – yes. It is not a universal solution, but a powerful tool for capital protection, diversification, and inflation hedging. Success requires preparation, understanding of trading mechanisms, and the ability to adapt to conditions. This is where the potential of markets lies – in rational aggression and balanced logic!

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Buy and Hold Investment Strategy: How It Works, Effectiveness

The philosophy of long-term investments is based on the idea that the market tends to grow over an extended period. In conditions of global instability, economic crises, and currency fluctuations, the “Buy and Hold” strategy is particularly relevant. With it, investors not only minimize risks but also take advantage of the growth of trading platforms without spending time tracking daily changes.

What is the “Buy and Hold” strategy and how does it work?

The essence of the tactic is to buy stocks or other securities and hold them for a long time, regardless of market fluctuations. The process can also be explained as follows: an investor selects quality assets that are expected to increase in value and ignores short-term fluctuations, such as the rise or fall in the value of individual contracts over a week or a month. Instead of selling securities when their value decreases, a professional adheres to the tactic, focusing on long-term growth.

An important element of the method is consistency and patience. The participant must be prepared to experience various market cycles. For example, in the case of stocks, they may fall in price for several years and then start rising again. The main goal is to wait until the assets reach their maximum value over the long term, which can take decades.

The main focus here is on the fundamental characteristics of the selected instruments: the state of the corporation, its financial indicators, and market potential. Choosing stocks for this approach implies the presence of stable and growing companies whose securities can generate income for decades.

Advantages of the “Buy and Hold” strategy for novice investors

The method offers several advantages that make it ideal for people who do not have deep knowledge of the market or do not have time for constant monitoring of their investment portfolio:

  1. Reduced stress. Investors do not worry every day about the prices of their assets because they are focused on long-term profit rather than short-term fluctuations.
  2. Avoidance of errors related to emotional decisions. This is important because many beginners succumb to panic and may sell securities during a temporary market downturn, missing the opportunity to recover lost funds when the price rises again.
  3. Passive portfolio management. New capital owners can choose quality instruments and not spend time on constant monitoring and trading. It is important to note that passive investing, for example through index funds, allows for low-cost management, significantly increasing net profit.

Risks: How to Avoid Pitfalls?

Like any other investment strategy, the “Buy and Hold” tactic is not without risks that can significantly affect an investor’s profitability:

  1. Long-term capital freeze. When a participant decides to adhere to this method, they must be prepared for their money to be “frozen” for years.
  2. Capital loss risk. If an investor chooses low-quality assets, such as shares of companies with low growth potential, they may incur significant losses. It is important to conduct a thorough analysis of the companies in which one plans to invest: diversification of the portfolio (stocks, bonds, real estate) can help here.
  3. Loss of purchasing power due to inflation: the value of money decreases over time, and even if securities increase in price, this trend may not offset losses, especially if they are not indexed based on current indicators.
  4. Psychological risks. Long-term investments require patience and the ability to cope with market fluctuations. Sometimes investors may succumb to fear and sell their assets at low levels.

How to Choose Assets for the “Buy and Hold” Strategy: Practical Guide

Firstly, the capital holder should pay attention to the fundamental indicators of companies whose stocks or bonds they are considering for purchase. Important indicators include profitability, return on investment, debt burden, and business growth rates.

Secondly, one should consider the company’s competitive position in the market and its ability to adapt to economic changes. The more stable the business, the higher the likelihood that its stocks will increase in value over decades.

Diversification is a fundamental parameter in forming an investment portfolio. By using this tool, one can reduce risks associated with the decline in the value of one asset. An investor can include not only stocks of large companies in their portfolio but also bonds, real estate, commodities, as well as riskier assets such as startups or cryptocurrencies.

Is It Worth Using the Method in Crisis Conditions?

The “Buy and Hold” strategy demonstrates its effectiveness not only in stable conditions but also during periods of market crises. Investors who adhere to a long-term perspective often find themselves in a favorable situation when the market experiences cyclical declines. This is especially relevant for novice participants who can use crises as opportunities to buy quality assets at reduced prices.

An important feature of the method is its ability to work in conditions of temporary market turmoil. When investors focused on short-term results start to panic and sell securities, those who adhere to a long-term strategy can take advantage of this confusion to purchase stocks or bonds at more favorable prices.

An example of successful application of the “Buy and Hold” strategy is the 2008 crisis when many leading companies experienced steep declines in stock prices. Capital owners who stuck to their method and did not succumb to panic saw their assets start to recover after a few years, with some businesses showing even greater growth. For example, shares of companies like Apple or Amazon grew by thousands of percent in the years following the 2008 crisis.

Companies with strong financial positions, low debt burdens, and high diversification have a much better chance of withstanding difficult times. For example, Johnson & Johnson or Procter & Gamble, despite economic challenges, continue to demonstrate stability due to sustained demand for their products.

Conclusion

By paying attention to risks such as capital freeze and loss of purchasing power due to inflation, the “Buy and Hold” strategy allows an investor to achieve stable growth with minimal effort if they have chosen the right assets for their portfolio. Stocks of large and stable companies, diversified financial instruments, as well as dividends and other forms of income from investments combined with a passive approach will ensure long-term success.

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the main asset classes for an investment portfolio: from equities to real estate

There are several critical factors to consider for the assets in an investment portfolio: return, risk and liquidity. These factors have a direct impact on the effectiveness of an investment strategy. To put together a successful investment portfolio, investors not only need to know what asset classes exist, but also understand their dynamics on the global stage. in 2023, for example, the stock market was volatile and many were revising their strategies to reflect the new economic reality.

Equities: opportunities and risks

Equities are one of the most prevalent asset classes in an investment portfolio. in 2023, the US stock market continued to recover from the 2020 economic downturn and attracted new investors. equities offer opportunities for dividends and capital appreciation, but come with high risks due to price volatility. in 2021-2022, technology stocks (Tesla, Apple, Microsoft) showed growth of 25-30%, but in 2023, the same giants faced sharp corrections.

characteristics:

  1. returns: historically, equities have offered returns of 7-10% a year for long-term investments.
  2. equity risk is high, especially for smaller companies or stocks in fast-moving sectors. Meta stocks, for example, fell 60% in 2022, underlining their vulnerability
  3. liquidity: extremely high, as shares are traded on exchanges around the world

bonds: protection and stability

bonds are debt instruments that provide investors with a fixed income. in a rising interest rate environment in 2023, fixed-rate bonds have become less attractive, as rising interest rates reduce the price of bonds in the secondary market. in the long term, however, bonds remain a stable asset in an investment portfolio.

characteristics:

  1. yield: in 2023, 10-year US government bonds will yield between 3.5% and 4%, while lower-rated corporate bonds could exceed 8%.
  2. risk: depends on the issuer’s rating. Bonds of Apple or Microsoft, for example, are considered almost risk-free, while emerging market bonds can be riskier.
  3. liquidity: medium. although debt can be sold on the secondary market, liquidity depends on the rating and market conditions.

bonds are ideal for long-term investors looking for stable income with moderate risk.

funds: convenience and accessibility

mutual funds are a professionally managed pool of assets. in recent years, interest in index funds and ETFs has been particularly strong. 2023 S&P 500 ETFs have provided investors with returns of between 15% and 20%, which is particularly attractive given inflation and market volatility.

characteristics:

  1. performance: depends on the type of fund. for example, Vanguard’s 2023 S&P 500 ETF achieved returns of 17%, while more aggressive growth funds achieved returns of up to 30%.
  2. risk: medium. the funds spread risk by including a large number of assets in the portfolio.
  3. liquidity: high. the funds are traded on an exchange and can be bought and sold at any time. for example, the Vanguard Total Stock Market ETF can be bought intraday on the NYSE or NASDAQ.

an ideal option for those who do not want to manage their assets themselves but want access to a wide range of securities and diversification.

real estate: sustainability and long-term returns

real estate remains an important asset in an investment portfolio, especially against the backdrop of rising inflation and economic volatility. in 2023, the US real estate market saw prices continue to rise despite rising interest rates. the value of owner-occupied homes increased by 7-10%, while commercial property yields rose to 5-6% per annum.

real estate:

  1. returns: in 2023, residential property in major US cities, such as New York or Los Angeles, yielded 4-6%. commercial property in the centre of big cities could yield up to 7-9% a year.
  2. risks: low. Real estate is less sensitive to short-term market fluctuations, but can be affected by long-term economic downturns or changes in tax policy.
  3. liquidity: low. selling property takes time and can take months or even years. stable prices per square metre and possible increases in value keep this asset class attractive.

gold: a sustainable investment

in an environment of economic uncertainty and high inflation, the precious metal has seen its value rise by 12-15%, making it attractive to investors looking to avoid the risks of other assets.

characteristics:

  1. yield: gold does not offer regular income, but it can increase in value in times of crisis. in 2023, the gold price was around $2,000 per ounce, up 12% from 2022
  2. risk: low. the precious metal is a stable asset in the long term, but the price can fluctuate sharply in the short term, as in 2022, when the price fell 5% due to a sharp increase in dollar tightness
  3. liquidity: high. The metal can be sold quickly on global markets through platforms such as the London Metal Exchange or COMEX.

investing in gold remains a good way to diversify a portfolio, especially in times of financial crisis.

portfolio assets: conclusion

The right spread of assets in an investment portfolio ensures stability and high returns in different economic conditions. stocks, bonds, real estate, gold, equities: each category has its own characteristics and risks. To build a successful portfolio, it is important to take a holistic approach, including the right spread and selection of assets based on investment objectives and time horizon.

 

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