MCXCOMMODITYLIVENEWS (JAN 05)

Commodity Trading In India

Golden Investment Research Private Limited

One of the strongest markets growing in the Asian market scene, apart from the stock market is the Commodity Market, especially so in the past few years. Commodities have become an integral part of the trading scene because of the rising demand for it. Countries like India, China and Brazil are fast catching up on the global trade market and this means that there would be a noteworthy boost in the demand for commodities in these rapidly developing industries. This constant demand has a skyrocketing effect on the prices of the commodities in the market.

Commodities like Aluminium, Copper, Crude Oil, Gold, Lead, Natural Gas, Nickel, Zinc, silver etc are constantly demanded and this demand is obviously going to increase with the rise in the global population. This means that the market is going to be trading a lot in the near future and therefore it becomes imperative that one also joins in on such a party. And investing in commodities is unlike stocks, because of their high demand and low supply ratio apart from the reasons for those who want to branch out in this market past bonds and real estate, and shares.

In India, the commodity market is an estimated Rs 1, 40, 000 crores which includes agricultural commodities like rice, wheat, spices, cotton; energy produces like coal and crude oil and then precious and base metals like gold, silver, iron ore, zinc, etc.  Commodity derivatives are a good option for those who wish to diversify away from shares, real estate, bonds, etc. And this investing can be done in many different ways; by investing in energy companies, investing in metal ownership ETFs and energy companies, investing in oil and gold futures, etc.

(MCX) is India’s number 1 and the world’s one of highest ranking commodity in silver, natural gas, crude oil and gold. For the unpredictable Indian Share Markets, the Indian Commodities Market comes as a healthy respite as it involves less risk and a better appreciation of investments. But the greatest threat to this form of trading is speculation. It can make or break one’s returns. http://www.goldennifty.com