One of the world’s oldest forms of investment is commodities. It is good practice for a long-term portfolio to consist of trading in commodities, even if it’s only a small percentage, because they remain relatively free from the chaos of individual stock shares. With the latest bull market approaching the 90-month mark, investors should consider whether they need to invest in something more tangible prior to the next bear market.
What does a commodity add to an investment portfolio?
The commodities market allows investors to put their money into something that is more likely to recover any lost value. A company can go out of business, but commodities like gold and silver will most likely always be in-demand. Commodities like water will most definitely, always be in demand. Therefore, investors know they can extract their wealth once the market recovers.