{"id":24698,"date":"2019-07-27T12:00:50","date_gmt":"2019-07-27T16:00:50","guid":{"rendered":"http:\/\/www.escapeartist.com\/?p=24698"},"modified":"2020-07-22T03:19:27","modified_gmt":"2020-07-22T07:19:27","slug":"is-investing-in-commodities-worth-your-money","status":"publish","type":"post","link":"https:\/\/www.escapeartist.com\/blog\/is-investing-in-commodities-worth-your-money\/","title":{"rendered":"Is Investing In Commodities Worth Your Money?"},"content":{"rendered":"
Your investment portfolios are only as good as the amount of diversification you incorporate into these. Many people understand spreading risk over a diverse portfolio but they usually assume that diversification can only be made through widespread investments in bonds or stocks. However, it\u2019s equally as astute if not more so to also diversify across markets rather than within a market itself. <\/span><\/p>\n I\u2019m speaking, of course, of the importance of investing in commodities <\/span>as well as <\/span><\/i>in securities. The precious metals market<\/a>, oil markets and recently of <\/span>teak<\/a> have actually enabled many people to make huge payoffs from their investments<\/span>. Even though the markets were dropping in 2018, there is a great chance that these will begin to grow in the coming year.<\/span><\/p>\n The question of whether you ought to invest in these markets depends on the performance of the commodities historically and <\/span>the opportunities that have arisen<\/span> over the past couple of years. <\/span><\/p>\n <\/p>\n Compared to stocks and bonds, commodities tend to fluctuate a lot less. This is because often people buy these as a necessity or like gold; <\/span>these have consistently been highly valued throughout history<\/span><\/a>. The oil market does tend to fluctuate a lot and based on whichever currency you invest with; you can make a fair bit of profit from it. <\/span><\/p>\n As part of your Self-directed IRA, you can probably sustain your wealth and even accumulate it if you play your cards right. Here are some advantages that you can expect from investing in commodities<\/span><\/p>\n <\/p>\n <\/p>\n <\/p>\n The problem with keeping your investments tied to the stock market or to bonds is that you will constantly be worried about fluctuations in the market. In the context of your retirement and long term financial stability, this uncertainty is going to put you through a very intense emotional roller coaster.<\/span><\/p>\n There are two ways in which the commodities market can help with your problem:<\/span><\/p>\n <\/p>\n Investors are fickle. The entire market shifts and flows depending on two factors; the demand for a certain stock and the financial performance of the company that created the stocks. If the securities market starts dropping, <\/span>investors begin to shift<\/span><\/a> to the commodities market in an effort to preserve their incomes. <\/span><\/p>\n Assuming that the market starts dropping, your overall portfolios are very likely to begin showing losses. While your commodities will begin moving in the other direction as people demand more commodities to invest in. In the worst-case scenario, a portfolio that\u2019s divided between stocks and commodities would break even rather than have you experiencing losses. In an ideal situation, you could actually stand to make a profit with commodities with rising prices. <\/span><\/p>\n <\/p>\n <\/p>\n <\/p>\n Due to the relative stability of commodities markets like gold and silver, it\u2019s entirely possible that you might make a marginal profit after years of holding your investment. However, <\/span>it also means that your investments will not devalue over time<\/span><\/a>. <\/span><\/p>\n So, if you\u2019ve invested $100 in the stock market and if the market crashes, you might just lose all your money or your investments might lose their value to drop to half of what they were worth. However, if you\u2019ve invested $100 in commodities; your overall worth would most likely still be $100 if not more in the long run. <\/span><\/p>\n So your investments in the commodities markets will act as a buffer against any fluctuations in conventional investment markets.<\/span><\/p>\n <\/p>\nThe Advantages of Investing In Commodities<\/b><\/h2>\n
A Buffer For Security Market Fluctuations<\/strong><\/h2>\n
Stock Markets and Commodities Move in Opposite Directions<\/b><\/h2>\n
Preserving Your Wealth<\/b><\/h2>\n
Ability to Trade Worldwide<\/b><\/h2>\n