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Friday, 14 September 2018

Gold to Silver Ratio Trading Strategy // commodities investing 2018 2019 2020

Gold to Silver Ratio Trading Strategy // commodities investing 2018 2019 2020 explained david moadel welcome to looking at the markets with David Modell today I wanted to discuss with you the gold to silver ratio I want to tell you what it is and how you could possibly use it as an indicator if you're a buyer or seller of gold or silver or both so let's take a look at it and the website I'm using right now this is a chart from macro trends dotnet wanted to give them credit alright so this is a chart showing all the way back from the late 1990s all the way through now and this is the gold to silver ratio now first of all what is the goal to silver ratio very simply they just take the price of an ounce of gold and divide it by the price of an ounce of silver in other words how much silver would it take to buy an ounce of gold alright or to put it another way how much more expensive is gold compared to silver and as you can see the mean or average is around 50 or so and when it gets up to around 80 then gold is much more expensive than silver and when it gets down to around 30 silver is much more expensive than gold and you might actually notice that at least since the late 1990s there has been a what you might call a resistance level here it tends to go up to around 80 and then mean revert or go back down to the average of around 50 goes up to around 80 mean revert goes down to around 30 or so I don't know if you would call that support level necessarily because it only seems to have gone down there once on this chart but it went down to around the low 30s and then it mean reverted or went back to the average of around 50 back up to 80 a little bit of mean reversion and now it's back up to around 80 or so again which seems to be a resistance level now there are no guarantees in the stock market of course or the commodities market just because it is bounced down from 84 to you know three times here of course it could go higher than 80 it could go up to 90 could go up to the high 90s alright there's no guarantees all right just because it bounced off of the low 30s that doesn't mean that it can't go below 30 of course it can go below 30 all right so the mean or average is around let's say around 50 or so so I tend to believe in mean reversion I tend to blend there no guarantees okay but I tend to believe that when an indicator goes way too high it usually at some point will come back to the average all right or the mean that's called mean reversion or when it goes too low it'll probably at some point come back to the mean or average and so when the gold to silver ratio goes up around to the 80 level which is where it's at right now actually as I'm making this video then if you have gold and silver you may want to consider selling some of your gold and buying some silver you might just want to consider it you have to make your own decisions I can't I cannot tell you what to do but it's something to think about because when it's up here that means that gold is way way way more expensive than silver okay and when it's down here you might want to consider selling some of your silver and buying some gold because when the gold to silver ratio is down here that means that silver is way way way more expensive than gold okay now just because the gold to silver ratio is way up here around 80 yes that means that gold is way more expensive than silver that doesn't mean that gold is expensive just means it's more expensive than silver okay it might be cheap compared to palladium or platinum or the stock market or whatever or the dollar or whatever I'm just saying if you have both gold and silver you might want to consider lightening up on your gold holdings and get some silver instead all right when it's way up here and the opposite is true if it goes way way down you may want to lighten up on your silver holdings and focus more on buying gold when it's down here alright so if you want to take on a little more risk when it's way up here and you believe it's going to mean revert back to 50 or so the gold silver ratio then you could and this is risky be aware okay this is a risky strategy you coup actually by silver and short the same amount the same dollar amount of gold all right when I'll repeat that way it's up here you might consider for example let's say it's up here or up here up here up here when the gold the silver ratio is really high you might consider as a very risky strategy okay but you might consider going long or buying silver and shorting the same dollar amount of gold because you believe that it's going to mean revert back to 50 which would mean that relatively speaking the price of gold would go down compared to silver or the price of silver would go up compared to gold alright when it's down here when the indicator is down here the gold is silver ratio again this is risky but you could try if you want to you could try going long gold or buying gold and shorting the the same dollar amount and or an equivalent dollar amount of silver because you believe that eventually the gold of silver ratio is going to mean revert back to around 50 or so in which case relatively speaking the price of gold would go up compared to silver and the price of silver would go down compared to the price of gold alright that's a riskier strategy but it could work if you do it very carefully very cautiously take small position sizes and mitigate or limit your risk at all times but the safer way to go safer way to go probably would just be when it goes away up here maybe just by if you already have both maybe just unload or sell some of your gold and buy more silver always in small amounts and always don't take on any risk you cannot afford to lose alright so that is the gold to silver ratio it's something you want to check on a regular basis especially if you're into trading gold or investing in gold or silver it's an indicator one of many that you can use alright so if you'd like some help with trading investing these stocks options whatever it is you can contact me at any time my name is David Modell and my email address is David Modell at gmail.com if you found this video helpful please give it a like on YouTube give it a thumbs up and leave a comment and subscribe to my youtube channel if you have not done that already and also if you really want to support my channel what you can do is you can click on and give thumbs up to my sponsored or promotional videos where you may see me promoting a ICO or a penny stock or a small company a mining company gold silver that kind of thing and that's a way it costs you nothing except a small amount of your time and effort to support my channel by doing that alright thanks a lot I appreciate it and I'll talk to you again really soon

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Can gold and silver protect you from a stock market crash? // Investing hoard physical commodities

Can gold and silver protect you from a stock market crash? // Investing hoard physical commodities, gold and silver investing, gold investing 2019, silver investing 2019, gold hedge, gold hedging explained, silver hedge, silver shortage 2019, investing in gold and silver, investing in gold, investing in silver, investing in gold bars, investing in gold coins, investing in silver bars, investing in silver coins, gold market crash, silver market crash, gold stock market, silver stock market, hoarding gold, hoarding silver, hoarding gold and silver david moadel welcome to looking at the markets with David Modell I wanted to look at whether holding on to gold or silver is a good way to protect yourself against a stock market crash so let's look at a website called macro trends net wanted to give them credit and we're going to look at how gold and silver first we're going to look at gold and how it performed during several economic recessions which would also be market crash in stock market crashes so the gray part here is a recession and as we can see this is the early 1990s recession and this is the gold price and it pretty much ended where it started during that recession so it held steady it went up but then frustratingly came came back down but at least it didn't lose money so it performed pretty well there let's take a look at the next recession after that which would be the early 2000s and as we can see gold went up during that it went up during the recession of the early 2000s so that's pretty good i would say was it was a pretty good hedge pretty good protection against that market crash there how about the most recent recession in the during the late 2000s well here the picture is not as clear it's pretty choppy here up down up and it did go up it ended somewhat higher than it started but it was probably not so easy to just ride out this ride out this downturn here this pullback I mean we know historically in hind sight that it came right back up but people didn't know it at the time it probably felt like it was going to keep going down all right so let's take a look also at silver prices and this is macro trends dotnet here we go silver prices hundred year historical chart we're going to let that load up and we're going to look at the same three market crashes or recessions and we'll see how silver did during that time we're going to make it not inflation adjusted and we're going to start again with the recession from we'll start with the early 1990s and we'll study that period let's see how it did there we go ah well let's look at silver during that early 1990s recession we can see silver prices going down sharply not such a great hedge not great protection against a market crash there or recession let's look at the dot-com dot-com bust of the early 2000s let's see how it performed then and we can already see that it that it's it was quite choppy look at that up down up down not so easy to ride that out it looks like it may have actually ended lower than it started a little bit somewhat but not not so steady it might not have been very easy emotionally to write out via this this up and down the chops here perhaps not such a perfect edge right there against a stock market crash and then finally we're going to look at the Great Recession the late 2000s here and a not this is silver and not such a perfect market hedge although it did land it did and just about where it started so if you had held on but it's not so easy to hold on to such a precipitous drop from in almost twenty dollars an ounce to less than half of that about nine dollars per ounce it's easy in hindsight to say oh well I would have just held on and it would have been fine but when it's falling so sharply so fast that's not such a great market hedge it's it's not so simple just to ride that out a lot of people would panic or lose patience and sell for a pretty sizable loss there so looking it over it looks like gold at least for the past three recessions gold seems to have been a better hedge or protection against a market crash than silver perhaps and I'm not telling you what to buy or what to do what not to do but gold does seem a little better at least historically for the past three recessions but neither one was a perfect market hedge they were both choppy they both had their ups and downs it's not so easy to write out those downs especially when it takes months or years to work itself out and especially when it goes down a lot so if you're going gold or silver with the only purpose being to write out a potential stock market crash or recession it's not a perfect catch you may want to consider other hedging hedging mechanisms hedging strategies such as holding cash or using put options or using small position sizes with your trades things like that there are things you can do besides stacking a lot of you know holding on to a lot of gold or silver there's nothing wrong with that but don't expect it to be a perfect market hedge there may be better the way better ways that you may want to consider alright so if this was helpful to you then please give this YouTube video a thumbs up and comments I like to read your comments and please subscribe to my youtube channel so you can receive the latest updates on my financial educational videos and if you'd like some help if you have questions or you'd like some help putting together a trading or investing plan you can contact me at any time my email thank you so much for watching and listening I really appreciate it and I'll talk to you again soon you

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Futures Market Explained

A three dollar box of corn cereal stays at roughly the same price day-to-day and week-to-week but corn prices can change daily sometimes by a few cents sometimes by a lot more why does the cost of processed foods generally stay quite stable even though the crops that go into them have prices that fluctuate it's partly thanks to the futures market the futures market allows the people who sell and buy large quantities of corn to insulate you the consumer from those changes without going out of business themselves let's meet our corn producer this farmer of course she is always looking to sell her corn at a high price and on the other side our corn user this cereal company is always looking to buy corn at a low price now the farmer has a little bit of a problem because her whole crop gets harvested at once lots and lots of farmers will be harvesting at the same time and the huge supply can send the price falling and even though that price might be appealing to the company that makes cereal from corn it doesn't want to purchase all of its corn at once because among other reasons it would have to pay to store it but it's fortunate that corn can be stored because that means it can be sold and bought throughout the year and this is where the futures market fits in buyers and sellers move bushels around in the market though actual corn rarely changes hands instead of buying and selling corn the farmer and cereal maker buy and sell contracts now we're getting closer to peace of mind for both sides because a futures contract provides a hedge against a change in the price this way neither side is stuck with only whatever the market price is when they want to buy or sell these contracts can be made at any time even before the farmer plants the corn she'll use the futures market to sell some of her anticipated crop on a certain date in the future of course she's not going to sell all of her corn on that contract just enough corn to reassure her that a low price at harvest won't ruin her business the contract provides that security the cereal company uses the same market to buy bushels their contract protects against a high price later contracts will gain or lose money in the futures market if the price goes high the farmer loses money on that futures contract because she's stuck with it but that's okay because now she can sell the rest of her corn what wasn't in that contract at the higher price that offsets her loss in the futures market if at harvest time the price of corn is low well that's exactly why she entered the futures market the low price means her contract makes money so that profit shields her from the sting of the low price she'll get for the bushels she sells now the corn cereal company doesn't like those higher prices and that's why they have a futures contract they make money on it and can use that profit to cover the higher price of the corn they now need to buy the futures market serves as a risk management tool it doesn't maximize profit instead it focuses on balance and in this way it keeps your cereal from breaking your weekly shopping budget

Michael Seery on trading commodities: coffee, oil, gold & silver, sugar & grains, indexes, and more

Michael Seery on trading commodities: coffee, oil, gold & silver, sugar & grains, indexes, and more // Mike Seery commodities commodity market trading investing for beginners soybeans trader futures currencies explained strategies tutorial for dummies david moadel welcome to looking at the markets with David Modell today I will be speaking with mr. Michael Siri Michael Siri is among other things a commodities experts he frequently appears on so many places Bloomberg News Fox Business CNBC worldwide CNN business Bloomberg TV The Wall Street Journal too many to mention he's also a guest on first business a national and internationally syndicated business show Michael has started his career in 1990 at the Chicago Board of Trade as a runner but he worked his way up to becoming a Series three broker he's been trading commodities since way back in 1994 currently mike is the principal of track trading LLC and he believes very strongly in risk management we're talking about capital preservation here he's not taking any unnecessary chances with his clients currently he is in charge of Siri futures dot-com se ery futures dot-com and that link is in the description of this video and we're going to be talking about trading commodities mostly but you know mr.

Siri can help you both with the consulting end of things as well as the trading Thank You mr. Michael Siri for joining me on looking at the markets today well thank you David I look forward to dealing with you yes like about talking the commodity market with you awesome you know so many people have traded stocks maybe they got an e trade accounts and they started trading stocks maybe they even took a step further into options but commodities and the commodities commodities futures markets that's a little scary for some people do you believe that trading commodities is something that a retail trader can get into oh absolutely no question about it never remember a lot of stocks or commodity price driven a lot of oil companies buy a lot of stock companies so some of the fun why a stalkers going up or down is because the commodity is going up or down what you have to do in commodities and just like you have to do in stocks is you have to get out of the losers because you will have losers it's just a mathematical certainty so you have to manage the risk and my rule of risk is on any given trade you risk 2% of your account balance and that's it so if we have a hundred thousand dollar account you risk $2,000 on that trade that's it so you're not losing 20 grand 50 grand the worst-case scenario is $2,000 we're talking about small position sizing here which for me is a cornerstone of trading especially if you want to be in this for the long run if you don't want to block your account okay we're basically dealing with one contract maybe two it's not like in stocks where you buy 100 shares or 500 shares in futures you might only have one or two contracts because of the leverage for example if you buy one contract to soybeans you are controlling 5,000 bushels yeah so you know so you think only one can't make any money yes you can and you also have to remember you might have three or four different trades on it once all risking $2,000 you might have a corn a coffee a sugar be risking $2,000 on each one interesting so let me ask you this if somebody wants to get into the commodities markets I'm going to guess that's you know just because you like Starbucks coffee that's probably not not enough to start trading coffee beans immediately okay or just because you like candy that's not enough to start trading trading sugar futures so yet what is yet between grains metals oil or the SPS the Dow that kind of thing what is a good place to start with as far as trading commodities goes well generally what you want to start looking commodities is really based on technical trends you must be a trend follower the trend is like the old saying David is the trend is your friend you don't want to go counter trend trading just like in the stock market the trend clearly is to the upside so you should be playing it to the upside get involved really what you want to start looking at is charting and look at charts that's the key just like in stocks get some familiarity get some education on how to chart and once you can do that then you start getting involved fundamentals and commodities can change very quickly you could read an article today about how much sugar there is in the world and then in a week from now should it just keeps exploding to the upside and you say well why there's all the sugar because things can change a weather event can change in a matter of days okay so that's where the risk comes in if you're wrong 2% doesn't matter what the fundamentals say you're out but basically what you want to do is start looking at charts identify a number one what is the trend is it higher or lower okay where do you put the stop-loss meaning where is my exit strategy that's those are the first two things you need to do interesting so we're talking about fundamentals are important but you got to look at the charts because yeah yes the fundamentals can change very quickly a lot of commodities are weather based like right now here in the Midwest we are going in we are in planting season but if we start and we have a lot of corn and soybeans right now the prices of soybeans in new lows this week but we get 95 degrees for two weeks this price will explode to the upside because now we're going to have less because it's going to hurt the prompt so that's where technical analysis and that's what they call it technical analysis is very very important makes sense why did it we'll get back to that but I wanted to talk about what's going on here on ciri futures comm which I recommend everybody should visit you've got so much here you've got some free content you've got a blog as well as Mike's coffee shop what the heck is Mike's coffee shop we're a coffee there yeah that's the one thing you can't get but maybe I'll fly Jerome over to your house and send you up for Amazon basically what it is as I write on a daily basis and it also includes talking to me on the phone you can't talk to me in this business no one will talk to you I will sit down with you and talk with you and that's why people like me but I write a lot of comments I give trade recommendations and if I'm not involved in the commodity I'll still give an opinion on what to look for where the key areas but if I am involved in it I'll tell you where to put to stop what the risk is what my thinking is and then like I said talking to me is important I like talking to people especially beginners you need to to sit down and actually get a game plan together especially if you're just starting out but even if you're not starting out you definitely want to be able to get that one-on-one personalized attention which is oh yeah which you are providing I'm looking at the at the products that you have here and you have it looks like you have several levels here going on at different price points which makes the rest but the two most popular ones David are the one-on-one which I charge five thousand dollars for the whole year and and that's unlimited and that also includes the newsletter if you just want the newsletter then it's just $1,250 for the year and you can still talk to me generally the people with the five thousand it's going to be more time-consuming share more comp more complicated generally larger accounts obviously if you're trading the $10,000 account you're not going to pay five thousand dollars right where you're trading a hundred thousand or more five thousand seems like a lot but that's for a whole year it's not a lot and I also see some events here for example webinars trading workshops you offer those as well correct absolutely you know what I'm here for I you know I pride myself on good service or a terrific service and you know I will sit with you for an hour if you want I mean whatever you need need to do I will help you do to try to become successful yeah the one thing I'm very good at is I don't make mistakes and people learn how don't you make mistakes I don't that doesn't mean I don't have losing trades because I do I have many losing trades but but you have to manage it but I don't make mistakes I don't buy the wrong contract month in commodities you have months you have old crop new crop it's more into it so I don't make mistakes I don't have too much too many contracts on I don't too much money I don't make mistakes and that's where I don't over trade I don't add to losers I stay with the basic formula of success and that's why people fail in this business they over trade they add the losers they turn a $5,000 loss into a $30,000 loss they don't know how to accept a loss and move on and that's where I help them you're sticking to your principles and you're not doing anything reckless and no yeah Catholic reservation yeah I'm a robot I do the same thing all the time there are times when I get stopped out of a trade and I lose a thousand dollars or something I'm upset about it but I take the loss and I accept it and I move on and then you'd be surprised a week later if you were still in that thing you could have been down eight grand you know that's why you know you get out and then there are times you get out and then it does go away but you have to you have to trade a formula you can't just second-guess second-guessing is the kiss of death David because in the long run you're going to be wrong by second-guessing once in a while you'll be right but you have to think of this in the long run not not what my account balance is today or tomorrow what's it going to be in five years yeah you got to look at the big picture as well yeah right now can't micromanage every single dollar that's just not the way to do it yeah there are months in the stock market when you lose constantly you know but then there are months will you win constantly you have to look at it and longer look at the people in 2008 2009 who took huge losses but now look at where those people are if they stuck with it they've had tremendous wins yeah tremendous but you have to think down the road not oh my god the markets down again tomorrow get me out no you got to think further and just keep playing the rules want to talk about crude oil you recently wrote an article here it is right there on your web site crude oil hits the four week high okay so you know crude oil went down for a while now it's coming back up around right what 48 dollars a barrel or so well I think it hit 50 recently yeah okay now what it you know where do we go from here now I read the article I just was telling you I'm not involved in crude but I still wrote about it telling you you know what's basically going on now my trading system David as I buy on for week heis and i sell on four we close I want to see a trend starting to develop before I get in however look my exit strategy if I'm long the contract as I put my stop at the 10-day low that's my exit strategy but the risk on this one is too high it does not meet my 2% criteria so I'm not involved okay sometimes you will miss a market because the risk is too high I like to take risks of $1,500 or less that's just generally my trading thesis okay but the 10-day low that's where I get out so if you are along this market sometimes I'll say if you are long this is where I would place my stop okay one it's all about maintaining risk of course that's that's huge and crucial and you want to admit sometimes that you're wrong in a trade okay buy something but I'm probably wrong on average I'm probably wrong 70 percent of the time interests 11 if I write 10 articles and there are all 10 recommendations 7 of them will be wrong okay but you say well how can you make money how can you be successful because those 7 we take the losses it's not necessarily always 2% some of them just fizzle out you might lose you know 300 dollars or something that's nothing but the key is the three winners you let them run and you don't get out until you're finally stopped out but that's how you have to do it you add the winners and you never ever add to a loser you accept the loss and that's it but you don't do more contracts don't dollar-cost average in this business that is the kiss of death it's been said let your winners run and cut your losers short I've spoken so many people and that has been told to me over and over and over there's a lot of truth to it absolutely and that's how I train that's how I train yeah and and this is kind of uncharitable but some people say only losers average losers no yeah never add to loser like I said I don't make mistakes I don't add to a loser makes sense to me wanted to talk about some other commodities for example if somebody wants to get into coffee futures okay you wrote that volatility and coffee is big beginning to increase do you look forward to volatility is that something is that when you trade when it's getting volatile well you can trade whenever but you want volatility because that means the prices can really move now in coffee as I write I'm not involved in this but I'm looking at buying it if prices break 137 75 in the July contract that's a four week high and if you do take that trade and that happens we're putting a stop at the 10-day low which is one free zero now that 10-day low will be raised if the price goes up to the next ten-day high but so I'm looking at buying this commodity we could be involved tomorrow if it's up there we're only about 400 points away which is a daily if that just coffee does that in a day interesting do you also trade the indices for example in the few in the futures for example the SPS the Dow that kind of thing yes well we will be involved with the Nasdaq 100 the Dow and the S&P 500 they also have many contracts there which are smaller contracts for smaller accounts but yes that is part of the group as far as fundamentals go is it necessary for example if you're trading coffee futures is it necessary to study the politics of a place like Brazil or something like that which is very will which is very using lately by the way I'm sure as we all know Brazil is and Brazil has some interesting things going on right now do you need to be studying that every day should you be watching the news or is that maybe somebody who doesn't have time for that is that not something you need to be doing III think you got to stay away from the fundamentals you want to just be a Chartist the fundamentals can change the Brazilian real drop 7% Thursday and had sent coffee prices down 500 but then Friday copies up 300 and this Brazilian rial will be forgotten about come Monday's trade so don't get wrapped up in fundamentals they change very quickly we could have a frost down in Brazil and the coffee's exploded to the upside you say well what about the reality it doesn't matter anymore it's old news BH Ardis that's where you need to sit down with me and go over it starts and that's the key it's a successful commodity trading focusing on technicals always a good idea absolutely um real quickly wanted to talk about a very popular topic among my listeners and viewers silver and gold you wrote about how silver went up 40 cents this week this is a blog posting from May 19th I'm looking at silver right now just you know maybe not the futures or commodities you know futures I would probably just buy the ETF with the ticker SLV something like that I don't know if for people who are stackers for people who want the physical stuff is there any advantage to trading silver or gold futures yes the physical stuff to be honest with you I just you know people like to have this gold in their house and this silver in their house I think it's foolish to have any large amounts of money in your house knowing knowing my luck my house would burn down and then I have all the silver gone through why why store and hoard all of this money to pick it robbed it just doesn't make sense when you can buy one futures contract it's in a brokerage up you don't have to worry about theft or some crazy thing happening and you can control much more of it and the problem with owning coins and and this is for people really a get hurt when you buy a coin off of a dealer he's putting their twenty or thirty percent increase on that price that's how he's making the webbing right but then you go and sell that coin guess what you're getting twenty or thirty percent cut because he has to buy it low and sell it high it's basically like a pawnshop if you go and sell it to the pawn guy for a hundred bucks well he's going to try to sell it for 150 right but if you own the futures contract you can liquidate it at a real price you're not you're not getting a retail price on it you're getting what it's actually worth interesting so and instantly to if you want your silver right now you're out at that price you don't have to go to a coin dealer and you know it's worth a hundred but he's only offering you 75 bucks for it well no and the future side if it's worth 100 you're getting a hundred yeah so you don't have to deal the middleman taking them out as much gotcha yeah that's how they make living and there's nothing wrong with that that's how they make a living that's right uh but you cannot make a you will not have a good deal Owen all this silver gold because when you have to sell it you're going to get a haircut on it they're not going to give you the actual price that it's worth that's just a fact I think a lot you know I've interviewed some of the greatest minds in silver and gold oftentimes the argument is that well if you know really bad things happen in the world okay you know if there if there's a you know almost like a Mad Max kind of scenario right having the physical stuff really is where it's at and so maybe they have a different purpose in buying it but I yeah but if you're if you're just trading it if you just go ahead in and get out perhaps natures are the way to go get would you agree yeah oh absolutely and this Mad Max there and trust me if that actually happened I'd still be nervous having a bunch of gold and silver on me I'd be robbed in about two seconds you kidding me it'd be total chaos it would be total pandemonium so no come on if you're actually thinking that's gonna happen and I am you know I just think that's a fool's game right right guys but this way we collapsed in 2008 there was no uh no you know no craziness but no one was fourteen gold and silver right right right true interesting point and then finally and this is the big question I think people would love to know what are you bullish on as far as which which you know commodity products for the rest of 2017 and are there any that you're bearish on well the trends have been shopping in the one thing about commodities we will be sellers we will be bearish on things it's not always buying if something is going down we will be selling okay so it's not like the stocks were generally are always just the buyer in commodities if things are going down we will be a seller now the US dollar has hit a seven-month low in Friday's action that's good for commodity prices and if you read my top art apply right will weak dollar prop commodities hiya if that trend continues and that's why silver was up that's why gold was up that's why oil has been rallying that will continue so I am bullish the commodities you have to remember if you look at a five-year chart on much of this day but we're pretty low good pretty low meaning the the volatility is going to be to the upside not to the downside we're squeezing blood out of a turnip on some of this stuff interesting actionable advice right there that we all need to listen to mr.

Michael Siri can be found at Siri se ery futures com is there a a social media are there any social media sites that you know Twitter that kind I'm on yeah I'm on Facebook and Twitter and Skype and I also have a live chat on my website okay you can just hit the live chat I always I tell I talked to a lot of people some friends there at work they don't want to be on the phone but the will talk that way but yeah Twitter and Skype and Facebook I'm on all of those but go to my website and you know we can always talk as well and it's free it's just part of the service very good sir I've been speaking with mr. Mike Siri who was generous enough to give me some of his time and I've learned so much today about the commodities markets what it's all about what to look at what not to look at and how to get started I hope to see you back here again sometime soon I'm looking at the markets thank you so much mr.

Siri big day today I look forward to working with you call me anytime I'm here to help help any of your customers as well thank you so much appreciate it thank you David thank you for watching please like comment and subscribe and I'll see you next time you .

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Are Commodities a Good Investment?

Are Commodities a Good Investment? The looming US China trade war has been put “on hold” according to US Treasury Secretary Mnuchin. Trump tweeted that “China has agreed to buy massive amounts of ADDITIONAL Farm/Agricultural Products - would be one of the best things to happen to our farmers in many years!” However, many are skeptical and you can include Profitable Investing Tips among the skeptics. Our eventual question for our readers will be, are commodities a good investment? But, first a little background. CNBC quotes Moody’s chief economist as saying that the proposed trade agreements are face-saving and lose-lose.

China consented to continue discussing measures under which it would purchase more U.S. products in order to reduce the $335 billion annual trade deficit between the two, but no specific dollar number was put forward. Zandi pointed to this as evidence that neither Washington nor Beijing had a plan, nor did either know what it specifically was they wanted from the ongoing talks. "When you get right down to it, what exactly are they going to do? Are they going lower the Chinese-U.S. bilateral trade deficit? It's just not going to happen. They're kicking it down the road because they really don't know what they want," Zandi said. The two biggest US exporters for years have been Boeing and all of US agriculture. But, will China buy another $200 billion in US Boeing jets when it really wants to develop its own aviation industry? We wrote about this in our article about whether the new Chinese passenger jet would hurt Boeing.

And, if Boeing gets a substantial increase in its business with China that will probably come with agreements for technology sharing which would hurt Boeing and US exports in the long run. Regarding US agricultural exports there is concern about being simply a commodity supplier to China. A couple of years back we wrote to beware the resource curse of boom and bust cycles. Brazil rode high during its commodity boom and has been licking its wounds ever since. Venezuela bought friends in the Caribbean with discounted oil and now its citizens cannot find milk, diapers or toilet paper in the stores. Beware of the resource curse of boom and bust cycles in commodity dependent economies. The issue with China is that the USA and Europe have exported much of their manufacturing supply chains to China and other nations in Asia. This was initially a good idea because it cut down on production costs. However, the result has been a worsening trade deficit in the USA, loss of jobs, and loss of the skill sets that make manufacturing work.

Fixing that situation will take more than getting China to import more jets, corn, soybeans, beef, chicken, and pork products. Are Commodities a Good Investment? Fidelity has a good explanation of investing in commodities. Commodity investing is investing in raw materials that are either consumed directly, such as food, or used as building blocks to create other products. These materials include energy sources like oil and gas, natural resources like timber and agricultural products, or precious metals like gold and platinum.

In the case of US exports to China these commodities would be agricultural. The up side to commodity investment is that helps you diversify your portfolio and there is always the potential for substantial profits. Also, commodities over time tend to hold their value making them a hedge against inflation. The down side of commodity investment according to Fidelity is this. Commodity prices can be extremely volatile and the commodities industry can be significantly affected by world events, import controls, worldwide competition, government regulations, and economic conditions, all of which can have an impact on commodity prices. There is a chance your investment could lose value. If commodities can be a good investment, how do you invest? There are ETFs that track precious metals and there are agricultural companies and related companies that will prosper with increased production and increased exports. Monsanto, CF Industries, Mosaic, John Deere, Agrium, ADM, and ADCO are a few of the larger and more substantial choices. For more insights and useful information about investments and investing, .

US China trade war solution, US farm products, exports to China