Alternative spellingsFrom Wiktionary under the GNU Free Documentation License. A commodity is some good for which there is demand, but which is supplied without qualitative differentiation across a market. It is a product that is the same no matter who produces it, such as petroleum, notebook paper, or milk. In other words, copper is copper. The price of copper is universal, and fluctuates daily based on global supply and demand. Stereos, on the other hand, have many levels of quality. And, the better a stereo is [perceived to be], the more it will cost. One of the characteristics of a commodity good is that its price is determined as a function of its market as a whole. Well-established physical commodities have actively traded spot and derivative markets. Generally, these are basic resources and agricultural products such as iron ore, crude oil, coal, ethanol, salt, sugar, coffee beans, soybeans, aluminum, copper, rice, wheat, gold, silver and platinum. Commoditization occurs as a goods or services market loses differentiation across its supply base, often by the diffusion of the intellectual capital necessary to acquire or produce it efficiently. As such, goods that formerly carried premium margins for market participants have become commodities, such as generic pharmaceuticals and silicon chips. From Wikipedia under the
GNU Free Documentation License What do you think about Oppenheimers Commodity Fund? Q. What do you think about the Commodity Strategy Total Return Fund. It looks good are there better ones that you like. Morningstar only gives it 2 stars. Asked by Peggy K - Mon Jul 28 13:13:52 2008 - - 1 Answers - 0 Comments A. You have to keep in mind that past fund performance is not an indicator of future performance. I have never been a fan of Morningstar. Most funds have high ratings, they are very biased in my view catering advertising fees from the industry that they rate. I would not give a Morningstar rating any creditability as a deciding factor to invest in a fund. Commodities have broken all kinds of support levels on the charts, and unless you can go short, I would avoid them. I think the run is over now, as the global economy has greater evidence of lower demand from an economic slow down. Answered by Net Advisor - Mon Jul 28 16:07:13 2008 Do you think the Federal Reserver is the cause of the commodity bubble? Q. I was thinking about the Term Auction Facility where the Fed is lending to various institutions. The institutions can use junk securities as collateral. If everyone is trying to blame the high commodities prices on speculation, where is this money coming from such that these institutions can buy to begin with? I have an idea that it might just be the money the Federal Reserve is lending out. Does any else think the Federal Reserve is the cause of this commodity bubble we are seeing? Asked by tvmaly - Mon Jun 23 23:18:59 2008 - - 4 Answers - 0 Comments A. Yes, it's possible that some of that money from the Fed has ended up in the commodities markets. Until recently, the Fed didn't lend any money to Wall Street investment banks. These banks had to get money from private investors. But now these banks have lots of cheap money from the Fed. And to make up for their losses in sub-prime mortgages, perhaps some of these banks are now speculating in the commodities markets. Trading profits is what they are after. Answered by Nick Z - Mon Jun 23 23:28:32 2008 If Fed policy doesn't cause commodity bubbles, why are commodity prices up since the last rate cut?
Q. In a quarter in which GDP shrank by 5.7% and the Fed cut the overnight rate almost to zero, commodity prices spiked. Asked by Didier Drogba - Tue Jun 2 13:21:13 2009 - - 4 Answers - 0 Comments A. Investing in commodities is done by investors as a hedge when they are worried about inflation. Personally, I regard commodities as too risky and volatile for my tastes and am instead investing in the stocks of companies that produce commodities (agribusinesses, mines, etc.). Answered by MikeGolf - Tue Jun 2 13:29:41 2009 From Yahoo Answer Search: "commodity"  news.google.com Expressindia.com New Delhi Zinc continued its two-session winning streak and prices moved up 0.58 per cent in futures trading at the Multi Commodity Exchange as traders ... and more » news.google.com HedgeWeek Salus Alpha has launched a commodity arbitrage fund which aims to take advantage of the difference between the S&P GSCI Total Return index and the S&P GSCI ... news.google.com Bloomberg 18 (Bloomberg) -- Glencore International AG, the world's biggest commodity -trading company, set aside less money for staff payments in the first nine months ... From Google News Search: "commodity"  img.superpages.com 100px x 150px | 28.30kB [source page] Securities Commodity Exchanges Select a state or featured city below to locate Securities Commodity Exchanges business listings There is a complete list of cities if you select  img.superpages.com 150px x 150px | 14.00kB [source page] Commodity Brokers Select a state or featured city below to locate Commodity Brokers business listings There is a complete list of cities if you select a state From Yahoo Image Search: "commodity"  commodityonline.com unknown ue, 17 Nov 2009 00:00:01 GM Washington (. Commodity. Online): After India bought 200 tonnes of the International Monetary Fund's (IMF) gold, it is the turn of Mauritius. The African nation bought two tonnes of gold from the IMF for around $72 million. ... commodityonline.com unknown ue, 17 Nov 2009 00:00:01 GM Commodity. Online. 'Gold is too big now but it is the end of bull run'. 2009-11-17 10:55:00. Print |. Email |. Discuss |. Related Stories. Silver is a better buy than gold: Jim Rogers · Report says China plans to build coal reserves ... commodityonline.com unknown ue, 17 Nov 2009 06:23:07 GM Futures tradings . commodity. trading tips news dated on 17 November 2009, Silver later gapped higher, triggering stops and climbing above 27700. Resistance was found near 27800 and light profit taking took the metal lower. From Google Blog Search: "commodity" |
