2023-11-17 17:09:49
Commodities are fundamental products in the financial market, offering interesting investment opportunities to diversify your portfolio and seek good returns. If you want to know how to invest in commodities, this complete guide is for you. Here, we will explore different ways of investing in this market, their advantages and disadvantages, and the main types of commodities available.
What are commodities and how do they work?
Commodities are tangible goods that serve as raw materials and are widely traded globally. They have specific characteristics, such as being produced on a large scale and having few differences in quality. They are essential products for the global economy, being used as inputs in the production of other goods.
There are several types of commodities, divided into categories such as agricultural, mineral, financial and energy. Agricultural commodities include grains (wheat, corn, soybeans), staple foods (rice, sugar, coffee) and other agribusiness-related products. Mineral commodities include precious metals (gold, silver, copper), oil, natural gas and iron ore. Financial commodities are basic financial assets, such as currencies and government bonds. And energy commodities are linked to energy generation and carbon credits.
The commodities market works through the negotiation of futures contracts between buyers and sellers. Contracts fix the quantity and price of the commodity to be traded at a future date. Commodity prices are influenced by several factors, such as supply and demand, weather conditions, political and economic events, among others.
1. Shares of companies in the commodities sector
One way to invest in commodities is by purchasing shares in companies in the sector. These companies are involved in the production, extraction or trading of commodities and can offer good investment opportunities. When you buy shares in these companies, you become a shareholder and participate in the results of the business.
Shares of companies in the commodities sector are traded on the stock exchange, such as B3. It is possible to invest in agribusiness, mining, oil companies, among others. These shares offer the potential for return through capital gains, when the value of the shares increases, and also through the receipt of dividends, which are payments of part of the company’s profits to shareholders.
It is important to highlight that investing in shares has risks, and it is recommended to carry out a careful analysis before making any investment decision. You can count on the help of a specialized professional to guide your choices.
2. ETFs (Exchange Traded Funds)
Another way to invest in commodities is through ETFs, which are exchange-traded index funds. These funds seek to replicate the performance of a benchmark index, such as a commodity index. When you invest in a commodity ETF, you are purchasing shares in that fund and exposing yourself to the performance of these commodities.
ETFs offer a practical and diversified way to invest in commodities. They allow you to invest in a portfolio of assets that represent the performance of the commodity market as a whole. This way, you don’t need to buy individual commodities, which can be more complex and require more capital.
3. BDRs (Brazilian Depositary Receipts)
If you want to invest in commodities with international exposure, one option is to invest in BDRs. BDRs are certificates of deposit for securities traded on the Brazilian market, but which represent foreign assets, such as shares in companies linked to commodities.
When investing in BDRs, you acquire a certificate backed by international assets, allowing you to participate in the results of these assets. For example, it is possible to invest in BDRs of shares in mining, oil or agribusiness companies, and benefit from the performance of these commodities.
This type of investment offers the advantage of diversifying your portfolio with international assets, without the need to open an account with a foreign brokerage. However, it is important to consider currency risks and the volatility of international markets when investing in BDRs.
4. Futures contracts
Another way to invest in commodities is through futures contract trading. Futures contracts are agreements between buyers and sellers to buy or sell a specific quantity of a commodity at a specified price on a future date.
Investing in commodity futures contracts allows you to speculate on changes in the prices of these commodities. For example, you might buy an oil futures contract if you believe its price will increase in the future. If the price actually rises, you can profit from the difference between the purchase price and the sale price of the contract.
This type of investment requires knowledge and constant monitoring of the commodities market. Furthermore, it is important to understand the risks involved, such as the possibility of losses if prices move contrary to your expectations.
5. Investment funds
Finally, another alternative to investing in commodities is through investment funds specialized in this sector. There are funds that concentrate their investments in commodities, seeking to obtain returns through the appreciation of these assets.
When investing in a commodities fund, you are delegating investment management to specialized professionals. These managers will select the best investment opportunities in the commodities market, diversify the portfolio and seek to maximize returns.
Commodity investment funds can be a good option for those who do not have in-depth knowledge of the commodities market or do not have time to closely follow trends in this sector.
Advantages and disadvantages of investing in commodities
Investing in commodities has advantages and disadvantages that must be considered before making an investment decision.
The advantages of investing in commodities include portfolio diversification, as commodities have a low correlation with other financial assets, such as stocks and bonds. Furthermore, commodities are tangible goods that have intrinsic value and are essential to the global economy, which can offer opportunities for appreciation.
However, there are also disadvantages. Commodities are volatile assets and their prices can vary greatly due to factors such as supply and demand, weather conditions and political events. Furthermore, investing in commodities may require specialized knowledge and constant monitoring of the market.
It is important to evaluate your investor profile, your financial objectives and your risk tolerance before investing in commodities. Also consider diversifying your portfolio and seeking guidance from specialized professionals to make more informed investment decisions.
Conclusion
Investing in commodities can be an interesting way to diversify your portfolio and seek returns in the financial market. There are several investment alternatives, such as shares of companies in the sector, ETFs, BDRs, futures contracts and specialized investment funds.
Before investing in commodities, it is important to understand how these assets work, the main types of commodities available and the factors that influence their prices. Evaluate your options, consider your investor profile and seek guidance from specialized professionals to make more informed investment decisions aligned with your financial objectives.
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