Ways to Buy Commodities in Demat Form

Ways to Buy Commodities in Demat Form

So you thought commodities were only good for a short time? You might be shocked to learn that commodities can be used as a long-term investment. Consider the following examples.

In 1971, gold saw its first major rise. Gold rose from $30 per ounce to $900 per ounce between 1971 and 1979. Gold rose sharply from $240/oz to $1900/oz between 2003 and 2011. Oil rallies are normally far shorter, but Brent's rise from $110 in August 2014 to $30 in February 2016 took 18 months. This has also been true for the majority of industrial metals. The underlying fact is that commodities, like stocks, have fairly extensive bull and down cycles, allowing for a long-term investment strategy. The question is whether to establish a long-term position on the spot market or on the commodity futures market.