5 popular commodities to invest in
Making the decision to invest is one of the most important steps in the life of any person and the best way to do it is with a basic knowledge of the markets that allows you to make the most of your capital. Although when investing in the financial world you think first about the stock market, it is important to know that it is not the only market in which you can invest and that there are options that offer greater stability and liquidity, which in turn translates into a greater sense of security.
One of these markets is that of commodities or raw materials, which is defined as markets in which products such as corn, natural gas, oil, leather, pork tripe, gold, etc. are bought and sold.
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Why invest in commodities?
There are several reasons to get started in the commodities market. One of them is that the number of applications they have considerably increases the demand for the material and that is why there is an interesting revaluation such as that of silver, which increased by more than 40% during 2020.
However, gold and silver are just two in a long list of popular commodities that attract investors’ attention. Here you can find 3 other examples of products within this market with a high demand.
Popular commodities to invest
Due to the high amount of commodities, they can be classified into large categories, among which stand out: grains, energy, metals and meats.
The energies continue to be one of the most important and within this list can be found: crude oil, gasoline, natural gas, ethanol and naphtha. These continue to be in high demand due to their role in sustaining life as we know it.
In the case of metals, you can find both gold and silver, but also copper, platinum, aluminum and palladium. Part of its importance for the market comes from the role that gold and silver have had in the history of mankind, but also from the multiple applications that these metals are given today. That combination makes metals an excellent commodity market in which to start.
For the grain category, wheat, soybeans, corn and oats stand out. Obviously they represent an important commodity market thanks to their demand and uses.
Finally, the meat category contains live cattle, live pigs, butter and milk.
A growing demand
All the aforementioned raw materials have an important role within society as we know it and this constant demand makes the commodities market considerably stable. Although it is influenced by the stock market, historically its tendency has been to increase or maintain.
BBVA New Gen aims to connect interested investors with this market that, although it may not be as well known as the stock market, offers a list of benefits that are important to take into account when making decisions.
Get started in the commodities market with BBVA New Gen and secure your future.
Commodities as an investment alternative
The commodities market is probably one the least known and most unpredictable for the majority of investors.
An investment made to measure for all clients
It is increasingly common for clients with knowledge of financial markets and with the intention of modulating risk according to their tolerance, to take the initiative and hire products tailored to their needs. The confidence between the bank and the clients is in this case is maximum and it seems interesting to talk about this current investment trend.