By Vipin Agnihotri
If you are one of those investors who are looking for good investments outside of stocks and real estate, commodities may be your answer. In my opinion, commodity investing is fast maturing in India and there are lots of products you can ride on. Crude oil, gold and copper are some of the sizzling commodities you can invest on at this moment of time.
According to experts, investing in commodities has been a breeze in the last few years because of the three new multi-commodity exchanges in the India, namely, Multi Commodity Exchange, National Commodity and Derivatives Exchange and the National Multi Commodity Exchange.
It is worth mentioning in this regard that the basic concepts of commodity trading, in terms of the cycle of demand and supply, are the same. In other word, commodities that are in demand appreciate higher than commodities that are out of the favor. But the pivotal factor here is that it may not be the case always as the commodity markets are driven by global factors. Therefore, proper study is an absolute must.
It is of paramount importance that investors must research before entering the ring. As a matter of fact, ideally they should go through a good broker who can help take informed decisions.
It has come into the notice of The India Street that volumes and business is booming at the commodity exchanges of India and commodity investing is gaining increasing acceptance with the investor fraternity ever since it was introduced some four years ago. In terms of statistic, the two national level exchanges Multi Commodity Exchange and National Commodity and Derivatives Exchange together clock a daily average turn over of Rs 15,000 crore.
Number of commodities is doing well but the actively traded ones are those that have a global appetite such as gold, silver, copper and zinc. There is no doubt that crude oil has caught investor interest in India. Widely been regarded as a highly volatile commodity, crude oil is a favorite with speculators. On the other hand, base metals have also been very popular with investors and punters alike due to their strong fundamentals.
Plenty of prominent equity brokers such as Motilal Oswal, Sharekhan and ICICI Direct offer commodity-trading services, apart from stock broking. For investors looking for delivery-based trading on the commodity exchanges, a demat account with NSDL or CDSL is mandatory.
Suggested Reading:
0 comments:
Post a Comment