Transcript Introduction - FMS Finance Society

What are Commodities?
Commodities are goods that have a universal price around the
world. Gold, for example, has the same price per ounce in Brazil
and Bombay
A commodity can be refined from a raw element, as oil is refined
from petroleum. A commodity can also be mined directly from
the Earth, such as a metal, or it can also be an agricultural
product
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Why invest in Commodities
Because they are not based on the profits or business strategies
of any one company or nation
Varied asset allocation allows an individual to spread out their
financial portfolio
Commodities being in short supply and increasing demand for
commodities all across the globe especially from countries like
India and China
There are commodities indexes, commodities exchanges, and
numerous types of contracts and buying options which allow a
savvy financial investor to make considerable amounts of
money
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Risks Associated with
Commodities
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Factors Influencing Commodity
Prices
Economics: Demand and Supply eg Oil, Corn
Dollar: Tracked through the dollar index
Price of Oil
Speculation?????
Economic Cycles
Stock Markets
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Various Heads of Commodities
Energy
Commodity
Major Exchange Traded
Brent, WTI Crude Oil
NYMEX
Natural Gas
NYMEX
Coal (API2)
NYMEX
Emissions
European Climate Exchange
Precious Metals
Commodity
Major Exchange Traded
Gold
COMEX
Silver
COMEX
Platinum
NYMEX
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Various Heads of Commodities
Industrial Metals
Commodity
Major Exchange Traded
Copper
NYMEX
Aluminium
NYMEX
Tin
London Metal Exchange
Zinc
London Metal Exchange
Agriculture
Commodity
Major Exchange Traded
Coffee
ICE(NYBOT)
Sugar
ICE(NYBOT)
Corn
CBOT
Wheat
CBOT
Soyabeans
CBOT
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Commodity Indices
S&P Goldman Sachs Commodity Index
Reuters/Jefferies CRB index
UBS Bloomberg Constant Maturity Commodity Index
Rogers International Commodity Index
INDEX NAME
VALUE
CHANGE
OPEN
HIGH
LOW
UBS Bloomberg CMCI
1,627.54
10.25
1,618.29 1,627.99
1,617.88
S&P GSCI
638.96
-14.14
648.02
649.51
636.35
RJ/CRB Commodity
323.58
-5.97
327.93
327.94
322.49
Rogers Intl
3,810.11 20.23
3,791.30
3,814.77
3,788.22
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Major Commodity Exchanges
Chicago Board of Trade (CBOT)
CME (Chicago Mercantile Exchange)
NYBOT (New York Board of Trade)
NYMEX: New York Mercantile Exchange
COMEX: Commodities Exchange
London Metals Exchange
LIFFE
Inter Continental Exchange(ICE)
Dalian Commodity Exchange
NCDEX
MCX
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