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Premier eFinance: Small time investors in India are turning to commodities.
In a clear indication of investment changes, small time investors in India are looking to commodity markets more than traditional markets.
By: Premier eFinance
Analysts believe that this phenomenon is catching on in India, especially among young investors. Larger investors in the country have already moved away from the risky currency and equity markets to commodities.
Among young Indian investors, the most popular commodities included gold, silver, oil and natural gas followed closely by coffee and cocoa.
This new breed of investors is selecting these closely watched commodities as they are not likely to surprise average investors like them, analysts informed Premier eFinance.
Gold, silver and oil are watched closely because their value influences what happens with the economy and these young investors feel comfortable calculating these risks.
According to the Forward Markets Commission (FMC), India’s commodity markets regulator, the number of small time players is increasing in India’s commodity markets.
The FMC also said that many investors used commodities to hedge against more volatile markets such as currency and equity, and that for many small time Indian investors, commodities formed only a portion of their portfolio.
India has 24 commodity futures exchanges, including three national markets which trade online. Premier eFinance has learned that the number of trades on India’s largest commodity exchange, the MCX, the number of trades executed has risen by 31% in the last year to 210 million.
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Premier eFinance is a full service commodity trading advisory offering services to traders ranging from the beginner, with no experience in the markets at all, to the advanced trader who is just looking for an avenue to place fast efficient orders.