What to Know About Commodities and How to Invest in Them

"What to Know About Commodities and How to Invest in Them" Insights from Vineyard Global Advisors CIO Tom Samuelson, CFA, CMT

Ivana Pino , author at Fortune , connected with Vineyard Global Advisors CIO Tom Samuelson for his expertise in navigating the commodities ecosystem.

Like any other investment or asset class, commodities are not without their benefits and drawbacks. Therefore, investors considering investing in commodities should weigh the pros and cons.

This Article Explores...

What Are Commodities?

Commodities are an asset class comprised of raw materials used to manufacture consumer goods. These investments can help diversify an investor’s mix of assets and spread risk across different asset types. Typically, commodities fall within four main categories: Agricultural, energy, metals, and livestock.

How Do You Invest in Commodities?

Commodities are investible in a few different ways. First, you can invest directly in the commodity, such as buying a gold bar. Next, you can purchase a commodity exchange traded fund (ETF) that owns the underlying commodity or financial futures contracts on it. Finally, you can purchase the common stock of companies involved in the production of commodities, such as buying Chevron common stock to participate in a rise in the price of crude oil.

The Benefits and Drawbacks of Commodities Investing.

The benefits of commodities investing are short-term profits and hedging against inflation since commodity assets tend to rise during inflation. However, the drawbacks of pursuing commodities are that they are notoriously volatile, only produce income upon selling the asset, and are prone to long periods of price declines.

Read the Full Article Here...

Author: Ivana Pino , Fortune

Guest Contributor: Tom Samuelson, CIO of Vineyard Global Advisors

Investment advisory services are provided through Integrated Advisors Network, LLC (“Integrated”) a registered investment advisor. Registration does not imply a certain level of skill or training. Vineyard Global Advisors, LLC is a practice group of Integrated.

The opinions expressed herein are those of Vineyard Global Advisors and are subject to change without notice. This material is not financial advice or an offer to sell any product. Forward-looking statements cannot be guaranteed. This document may contain certain information that constitutes “forward-looking statements” which can be identified by the use of forward-looking terminology such as “may,” “expect,” “will,” “hope,” “forecast,” “intend,” “target,” “believe,” and/or comparable terminology. No assurance, representation, or warranty is made by any person that any of Vineyard’s assumptions, expectations, objectives, and/or goals will be achieved. Nothing contained in this document may be relied upon as a guarantee, promise, assurance, or representation as to the future. Vineyard Global Advisors is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. Investment advisory services offered through Integrated Advisors Network, LLC (“Integrated), a registered investment advisor. Vineyard Global Advisors is a DBA of Integrated.

Investors cannot invest directly in an index.

There is no guarantee that the investment objectives will be achieved. Moreover, past performance is not a guarantee or indicator of future results. Does not constitute advice or a recommendation or offer to sell or a solicitation to deal in any security or financial product. It is provided for information purposes only and on the understanding that the recipient has sufficient knowledge and experience to be able to understand and make their own evaluation of the proposals and services described herein, any risks associated therewith and any related legal, tax, accounting or other material considerations.

Integrated is registered with the Securities and Exchange Commission (SEC). Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. Business is only transacted in states in which it is property registered or is excluded or exempted from registration. A copy of Integrated's and VGA's current written disclosure brochure filed with the SEC which discusses among other things, business practices, services and fees, is available through the SEC's website at: www.adviserinfo.sec.gov

What to Know About Commodities and How to Invest in Them