Commodity Investing
The commodity presents unique characteristics as investment vehicle. They have been shown to have very low and sometime negative correlation with the traditional investments including stocks, bonds etc. the commodity in general perform better at times when the economy is weaker, surprisingly when stocks and bonds under performs. They have been shown to be good hedge against inflation. The commodity could be an excellent diversifier at times when economy is in general in recession or depressed.
Exposure to commodity could be undertaken by buying stocks of commodity producing companies; however, study suggests that this method is poor bet for commodity exposure. Direct exposure to commodity is done either through cash settled futures, or deliverable future. In Pakistan commodity investing is done electronically through national commodity exchange (NCEL).
Metals and Commodities that are traded on the online National Commodity Exchange are:
Gold
Silver
Crude Oil
Palm Oil
Rice
Some Securities firms that deal with metal and commodities on differed payment basis, albeit with margin requirements are listed below:
IGI Finex Securities
http://www.igisecurities.com.pk/
KASB Securities
http://www.kasb.com/securities/Default.aspx
JS Global Capital Limited
http://www.js.com/default.asp
Elixir Securities Pakistan (Private) Limited
http://www.elixirsec.com/
Darson Securities (Pvt.) Limited
http://www.darson.com.pk/
Falcon Commodities (Private) Limited
http://www.falcon.net.pk/
Fortune Securities Limited
http://www.fortunesecurities.com/index.html
ADAM Securities Pvt Ltd
http://www.adamsecurities.com.pk/
BMA Capital Management Limited
http://www.bmacapital.com/
Invest Capital Market Limited
http://www.investcapital.com/value.htm
Crosby Markets Private Limited
http://www.crosby.com.pk/index.htm
