Explore the unique investment avenues of natural resources, focusing on timberland, farmland, and commodities. You’ll learn about their income characteristics, how returns are influenced by various factors, and the complexities of commodity investments and pricing.
Timberland and Farmland
Step into the green expanse of timberland and farmland as potential alternative investments. Get to know how their income characteristics differ and how returns are influenced by various factors including land and commodity prices. Also, get a reality check on the risks associated with these investments, encompassing low liquidity, high fixed costs, and the vagaries of weather.
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Forms of Commodity Investments
Unravel the mysteries of commodities as an alternative investment. Get the scoop on everything from various commodity categories to the intricacies of commodity derivatives. Uncover other forms of commodity investment like ETFs and equities, and grasp why investing in commodities can offer capital gains, diversification benefits, and an inflation hedge.
► Ready to dig into commodities? Dive in here!
Commodity Prices and Investments
Grab your gear and join the exploration of factors influencing commodity prices, from supply and demand to the role of speculators. Plunge into the intricacies of pricing commodity futures contracts, and get to grips with the role of risk-free rate, storage costs, and convenience yield. Finally, unravel the three key sources of returns for commodity futures: roll yield, changes in spot price, and collateral yield.
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