Commodities Markets
ABSTRACT
Commodity market is gaining attention worldwide as a best alternative investment options. As the demands for various commodities increase, markets are steady and the fluctuations are predictable. It is also easier to manage and fetch good yields, if done properly. However, the investor needs to monitor commodities market on regular basis at the right time to achieve his investment objectives.
The global meltdown has resulted in escalating precious metals such as gold and silver in gaining momentum as alternative investment options. Demand for precious metals is growing world over and owing to this the prices are increasing steadily. Investing on gold and silver fetches good returns in medium to long terms, besides the risks are lesser in comparison to other types of investments such as stock market and commodity market. Thus they serve as ideal alternative investments option for risk-averse investors.
Thus the project contains a detailed study about the commodity markets and widely traded commodities all over the world.
CHAPTER 1: COMMODITY AND COMMODITY MARKETS
1.1 WHAT IS COMMODITY?
Commodity includes all kinds of goods. FCRA defines "goods" as "every kind of movable property other than actionable claims, money and securities". Futures' trading is organized in such goods or commodities as are permitted by the Central Government. At present, all goods and products of agricultural (including plantation), mineral and fossil origin are allowed for futures trading under the auspices of the commodity exchanges recognized under the FCRA. The national commodity exchanges have been recognized by the Central Government for organizing trading in all permissible commodities which include precious (gold & silver) and non-ferrous metals; cereals and pulses; ginned and un-ginned cotton; oilseeds, oils and oilcakes; raw jute and jute goods; sugar and gur; potatoes and onions; coffee and tea; rubberand spices, etc. Currently, the various commodities across
Commodity market is gaining attention worldwide as a best alternative investment options. As the demands for various commodities increase, markets are steady and the fluctuations are predictable. It is also easier to manage and fetch good yields, if done properly. However, the investor needs to monitor commodities market on regular basis at the right time to achieve his investment objectives.
The global meltdown has resulted in escalating precious metals such as gold and silver in gaining momentum as alternative investment options. Demand for precious metals is growing world over and owing to this the prices are increasing steadily. Investing on gold and silver fetches good returns in medium to long terms, besides the risks are lesser in comparison to other types of investments such as stock market and commodity market. Thus they serve as ideal alternative investments option for risk-averse investors.
Thus the project contains a detailed study about the commodity markets and widely traded commodities all over the world.
CHAPTER 1: COMMODITY AND COMMODITY MARKETS
1.1 WHAT IS COMMODITY?
Commodity includes all kinds of goods. FCRA defines "goods" as "every kind of movable property other than actionable claims, money and securities". Futures' trading is organized in such goods or commodities as are permitted by the Central Government. At present, all goods and products of agricultural (including plantation), mineral and fossil origin are allowed for futures trading under the auspices of the commodity exchanges recognized under the FCRA. The national commodity exchanges have been recognized by the Central Government for organizing trading in all permissible commodities which include precious (gold & silver) and non-ferrous metals; cereals and pulses; ginned and un-ginned cotton; oilseeds, oils and oilcakes; raw jute and jute goods; sugar and gur; potatoes and onions; coffee and tea; rubberand spices, etc. Currently, the various commodities across