Investing in commodities

Posted on October 11th, 2009 by David Luhman and tagged , .

I had an earlier article about how diversifying into commodities can give higher total returns with lower volatility.

But now the question is, how should one invest in commodities? Do like my high school physics professor who bought a bunch of copper tubing during the Jimmy Carter memorial inflation of the early 1980s?

Although having a bunch of copper tubing in the back yard may be a better investment than some of the "securitized" assets of the past few years, in theory we've advanced in the past 25 years, and have more venues to invest in commodities.

Here are some diversified commodity ETFs / ETNs worth looking at :

DJP
RJI
DBC
GSG

Here are some good references :

http://www.indexuniverse.com/sections/features/6698-parsing-commodities-...

http://seekingalpha.com/article/62489-ishares-diversified-commodity-fund...
http://seekingalpha.com/article/136509-the-ultimate-commodities-etf-guide

http://www.etfguide.com/commentary/578/Do-Commodities-Belong-in-Your-Por...

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