Commodities
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This document defines commodities as products or raw materials that can be bought and sold. It discusses that commodities involve future contracts between two parties to transact money and physical commodities at an agreed upon price. Commodities can be agricultural, precious metals, base metals, or energy sources. The document also outlines some advantages and disadvantages of commodities investing such as risk, lack of divisibility, and skill required.
Commodities
- 1. ATIKAH BINTI ABDUL RAHMAN NORLAILI BINTI ABD WAHAB COMMODITIES
- 2. Definition Define as a product or raw material that can be bought and sold The concept Future contract of raw material, involved two parties agreed to transact a sum of money and physical commodities at a particular price.
- 3. CHARACTERISTIC Inflation Proof Deliverability Future contract Direct investment Speculation
- 4. TYPES OF COMMODITIES Agricultural Non-Agricultural Precious metal Base metal complex Energy
- 5. GOVERNMENT POLICY Institutional support and allocation (RMK9) Statutory bodies
- 6. ADVANTAGES & DISADVANTAGES Risky investment No time decay Lack of divisibility Diversification Required skill and Suitable for short high level of and long term knowledge investment Leverage High return Speed of trading
- 7. INVESTMENT PORTFOLIO Security of Security of Manageme Selling capital & ease income in nt Expense Expense of withdrawal relation to purchasing power Secured Return If broker Not depends on is hired applicable Liquid for future short term trading and inv. market price
- 8. INVESTMENT PORTFOLIO (Contd) Yield Risk Duration Depending on Secured Return contract depends on Liquid for future trading short term and market inv. price
- 9. THE END