There are several times to buy commodities. However, you should be cautious when buying them in a short term. The best time to invest in commodities depends on your time horizon and your goals. If you plan to invest for the long term, it is best to buy at a low price and sell it when the price has gone up. Here are some tips on when to buy commodities. Keep in mind that investing in commodities may not be a good idea for all investors.
First, commodities are risky assets. Every business faces risks, including credit risk, margin risk, market risk, and volatility. This type of risk is amplified by the high leverage in commodity futures markets. Ultimately, investing in commodities may not be the best idea for most investors. But you can remove the risk from your portfolio by buying futures contracts. You can take advantage of the company-related risks by using these futures contracts.
Secondly, commodities are risky investments. Compared to stocks, their margin requirements are much lower. This is a good thing for new investors. Remember that you should start with a small amount. You can begin with as little as three to five percent of your portfolio. Although gold prices are very volatile, they have always held their value over the long run. Besides, gold has historically been used as a hedge against inflation and the depreciation of major currencies.