Jim Rogers: Gold & Silver ETFs Offer Investors Easy-To-Use Method To Profit - Gold & Silver Prices

March 4, 2013 - PRLog -- One of issues all investors should know for 2013 is how you can invest in gold and silver, because the prices of those commodities head for massive gains. One of the factors they'll soar is because institutional investors have rapidly abandoned them in the present risk on/risk off investment climate. There's right now roughly $424 billion invested in commodities, but that's a mere fraction of 1% of all international investment assets. When all that cash comes pouring back in, these commodity-related investments will skyrocket. How high will silver go? Learn more >>  http://www.silverpricestoday.cc/KITCO-SILVER/

The few institutions that jumped in to the marketplace had been disappointed because the commodities "super-cycle" didn't produce spectacular gains for them in a year or two. Furthermore, with inflation appearing to become nonexistent in the government-reported numbers, institutions are bailing on commodities. For instance, the giant California state pension fund Calpers last month slashed its meager 1.5% allocation to commodities to a miniscule 0.6%. It moved the cash in to the currently bloated U.S. bond marketplace, adding to its overweight position.

Simply because institutions are shortsighted does not mean you should be. Maintaining a percentage of one's portfolio invested in commodities should help smooth out the effects of volatility.

Having more and more central banks pursuing easy-money policies, currencies will fall and commodities will be more beneficial to investors. Rare Coins, Silver Coins, Gold Coins, Learn more >> http://www.silverpricestoday.cc/GOLD-COINS/

Also, keep in mind that emerging markets have not fallen off the Earth. They're nonetheless expanding quickly, and have a hunger for all sorts of commodities.

You will find two broad categories of commodities: hard and soft. Hard commodities cover every thing in the metals and power locations such as oil, all-natural gas, copper, nickel, gold and silver. Soft commodities consist of all of the commodities which are edible such as all of the grains, cattle, pork bellies, sugar, coffee, cocoa and orange juice. Cotton too is thought of as a soft commodity.

You will find 3 methods investors can gain exposure: purchasing the actual physical commodity (such a gold bar), buying futures contracts and investing in commodity stocks and exchange-traded funds (ETFs). Futures contracts and choices generally involve a high degree of risk because they're frequently short-term "bets" on price direction. The safer play would be to take a long-term approach through either individual commodity stocks or ETFs.

Investing in a commodity stock, like the world's biggest commodities business BHP Billiton  entails exactly the same procedure as purchasing any other stock. Macro-economic circumstances, business management and balance sheet elements all come into play.

How you can Invest in Commodity ETFs
The newest technique of investing into commodities became part of the mainstream in current years - exchange-traded funds.

Jim Rogers stated that commodity ETFs offer people an easy-to-use technique to profit in the mixture of supply shortages in some commodities, increasing demand in emerging markets, and easy monetary policies in the world's significant central banks in the United states of America, Japan and Europe. Some commodity ETFs allow investors to purchase a basket of commodity-related stocks like BHP. An instance of this kind of ETF will be the Market Vectors Hard Asset Producers . It's based on the index put together by Van Eck and Rogers and consists of the biggest mining and power businesses.

Some others give investors exposure to an individual commodity or perhaps a basket of commodities through ownership of futures contracts. The PowerShares DB Agriculture Fund , which invests in futures in all of the soft commodities from corn to cattle to coffee and cocoa, is definitely an instance of this kind of ETF. The Teucrium Sugar Fund (NYSEArca: CANE) is definitely an instance of an ETF that owns futures on only one commodity - sugar, in this case.

Other ETFs really own the physical commodity itself. The greatest ETF of this type will be the SPDR Gold Shares , which holds gold bullion in trust for shareholders. Another kind of exchange-traded vehicle is in the Sprott family and enables shareholders to really take physical possession of precious metals. Sprott offers this for platinum and palladium, gold and silver - the Sprott Physical Silver Trust .

You will find now a myriad of methods for the average investor to effortlessly place some cash into this third asset class. So now that you really understand how to invest in commodities, there's no excuse to not. Analysts say that now is a great time to buy gold and buy silver and hold for the long term. How high will silver go? Learn more >>  http://silverpricestoday.cc/KITCO-SILVER/