Investing in Commodities has always been a highly appreciated method by investors, as well as one of the most remunerative.
But be careful, because the statement "it is one of the most remunerative" should be understood in the right way. We mean that it is much more difficult for a commodity to lose value compared to other assets deemed riskier such as Stocks, Forex, and Crypto.
Commodities are in fact considered safe-haven assets, suffer much less from volatility, and give greater possibilities of gain (although often it is lower than what you can earn by investing in other assets).
Below we will indicate which are the most interesting commodities, how to invest (platforms and Brokers) and how much you can earn.
Investing in Commodities: the three categories
Before starting to invest in commodities, we would like to point out that they are divided into three sub-categories. Namely the commodities:
- agricultural;
- energy;
- precious metals.
Obviously, the most interesting commodities that are truly to be considered as a safe-haven asset are precious metals. These include gold, silver, platinum, and so on.
Energy commodities, on the other hand, are those that are used to create other goods, products, or even to power industrial machinery. These include oil, gas, copper, and so on.
Finally, there are agricultural commodities such as coffee, wheat, sugar, and so on.
The most reliable platforms and Brokers
The method we recommend for investing in commodities is through online trading.
Nowadays there are many valid platforms, although we always recommend relying exclusively on Brokers / platforms in possession of the ESMA (European Securities and Markets Authority) license and not.
Among the most reliable brokers at European and world level we report:
- TotalFX (Min. Deposit 100.00 €);
- XTB (Min. Deposit 250.00 €);
- AvaTrade (Min. Deposit 100.00 €);
- XM (Min. Deposit 5.00 €);
All the platforms mentioned above are authorized to offer trading and brokerage services throughout the European territory.
How much you can earn
It is difficult to establish how much you can earn from an investment in commodities. Obviously everything will depend on the chosen commodity and its market trend.
If it is precious metals, we believe that at the end of the year you will almost certainly find yourself with a profit. The value of commodities such as gold and silver tends to always increase. Slightly, but constantly.
To give you a practical example, below you will find the valuation of Gold and Silver in the last 10 years.
Gold Quotation
Here is the gold price in the last 10 years. The value indicated is to be understood per gram. All values refer to the last session of each year (eg December 31).
Year 2020 - € 49.97
Year 2019 - € 43.48
Year 2018 - € 35.82
Year 2017 - € 34.78
Year 2016 - € 34.86
Year 2015 - € 31.23
Year 2014 - € 31.74
Year 2013 - € 28.45
Year 2012 - € 40.29
Year 2011 - € 39.20
Year 2010 - € 34.13
Silver Quotation
Here is the silver price in the last 10 years. The value indicated is to be understood per gram. All values refer to the last session of each year (eg December 31).
Year 2020 - € 0.52
Year 2019 - € 0.51
Year 2018 - € 0.43
Year 2017 - € 0.45
Year 2016 - € 0.48
Year 2015 - € 0.41
Year 2014 - € 0.41
Year 2013 - € 0.45
Year 2012 - € 0.73
Year 2011 - € 0.69
Year 2010 - € 0.74
