Commodity ETF

What do we have to know about commodity ETF to profit from them? Well first off we don’t need to know about the actual product – be it oil or gold or coffee or whatever. No, what we need to understand is the potential supply and demand for that  product in the weeks and months to come.

Having said that of course, if you have an intimate understanding of how weather conditions can affect the growth and production of the cocoa plant I suspect you are one big step ahead of most of us!

Taking this on a broader scale – once we emerge from the current economic slowdown, and even now there are signs we are just about to do so, it would be a good thing to have done your homework because investment capital will rocket! Why not be ahead of the bandwagon rather than jumping on when its already traveling at speed?

Do the homework right now before things really take off.  The global economy is plodding a bit at the moment but not for much longer.

If you are involved in or thinking about investing in commodities ETF on an international scale you will have some knowledge about the up and coming economies – India of course, China no doubt but what about Russia?

I’ve been to Russia a number of times since the collapse of communism (my wife was Russian) and although the infrastructure is old and battered, there is no doubt about it that the powers that be want to become again the powers that were once – a super power in the world. But this time they are in the midst of embracing capitalism and there is the difference.

Its a long slow process for Russians to come to grips with capitalism after many decades of living with the alternative and also being ruled by their iron-minded (and fisted) government. The Russian government still take a dim view of overly powerful big shots living in Russia, but keep on the right side of them and you are good to go.

Right now there is too much corruption in the country to be safe to invest big time, unless you have very intimate knowledge of the workings. But, in the next few years and decades there will be change and it will pave the way for the commodity ETF investor as much as it would any investor! Be aware!