DISQUS

Paul · 3 years ago

"The last act of any mania is always played out in the mines." First an equity bubble, then a real estate bubble, and finally a "security-of-hard-assets" commodities bubble. I have to stick with the old wisdom here: the worst reason to buy anything is because the price is going up. Usually when I hear the bulls or pundits say something like "It's gone up a lot, but still has a lot of room left to run", it's my cue to head for the door. Also, and this is just ancedotal, but it also seems to me that by the time someone gets around to making an ETF for a fad, the fad is almost over.

moneymonk · 2 years ago

I bought shares in DBC. I wanted to invest in Gold, but I felt DBC was a better way to go because of the diversity in commodities.

David · 2 years ago

When commodities bulls say:

"growth in emerging markets such as China and India is among the long-term drivers of demand [in commodities]"

they are generally refering to commoditites that are required for manufacturing, such as metals, fuels etc. In reference to this ETF, only Oil and Alumninium fall into that category.

Oil is probably artificially high because of instability in the middle east, which leaves aluminium as being the only component of this fund which is likely to see growth driven by this cause. As such it's probably not ideal for someone looking to invest based on that rationale. Something linked to copper, nickel, steel, coal and similar is probably more appropriate, in my opinion.