The commodities are gleamingthat's not true about gold alone, but for all the exchange traded commodities in general. Do the small investors have any role to play here? Incidentally yes. How difficult or easy is it to invest in these markets? Well, it's altogether a different arena; so rules of the game are different as are the tricks of the trade. What is required here is a little bit of acquaintance coupled with some fundamentals.
We are dealing with resurrection of commodity trading in Indian markets. If you are asked to pose the similarity between gold and wheat, silver and soybeans, will you be able to guess whether we are grounding them on luster, buying psyche, or trading opportunities? Well it is not narrow-minded thinking of trading in everything. But believe it or not there is a good market in the making which is poised to take over, interestingly, the all-time favorite stocks market.
For an investor two ingredients are required for the recipe of investment. First, profit and opportunity for spotting the same and second, comfort level with the investment avenue. Here the profit factor is easy to catch on but as an investment avenue, for the time being, commodities trading may not be institutively appealing, as in the first instance it doesn't seem to be so fancy trading in them and the visual impact of the environmental changes on pricing are not easily perceivable as it is in the case of equity prices. But that's the matter of acquaintance and surely, in the near future one might find few of the futures in the monthly list of grocery items like cereals and pulses. It is that easy.
Considering that you have stock of 100 gm of gold cache, if prices are rising you are tempted to sell; similarly if prices are falling, you consider it as a buying opportunity. In reality, you may or may not transact at all. If opportunities are available to gain on such movements of prices, why can't it be explored? The commodities which are better known to us, to begin with, can be considered for trading and some amount can be invested to gain from such trade. The radiance here is that you are dealing with the changes in the prices and not with the absolute amount. |
