Juliann Warnes ECO 3028 1001 12 Week 3
Juliann Warnes
Microeconomics ECO 3028-1001-12
Professor Gotches
November 1, 2014
Article: What are Commodities Futures? Commodities future is an agreement in which to buy or sell a commodity prices change on a daily basis. It is like of the prices do up then the buyer makes money. The reason for this is because he gets a product for a lower price and then sells it at today’s higher price. The way commodities future is by being traded in an open market is that the values are set by commodities traders and analysts that spend all day researching their particular commodity and their forecasts are based on the information for today. There are times that speculators will give a higher bid of a commodity to make a profit especially if a crisis happens and they feel that there will be a shortage of that product. When traders see the price of commodities skyrocketing they will create a bidding war and drive prices even higher. Example would be like maybe a flood or earthquake and people will be buying a lot of supplies so there would be a shortage of water, batteries or even flashlights, those will be the items that would get the higher bids. The best way to invest in or monitor commodities futures by commodities ETF or commodities mutual fund, these are either a single number which takes an account of a big part of the commodities future during any given time. Commodities prices are very buoyant and the market is prevalent when it comes to fraudulent activities. So if you are not sure of yourself when it comes to commodities you might want to look at Commodities Profits, Day Trading in Commodities futures or review CTFC’s Guide to Fraudulent Activity and Education Center.
Reference
Miller, R. L., (2014) Economics Today (17th ed.) Boston: Pearson Addison- Wesley
www.economicnews/commodities
Microeconomics ECO 3028-1001-12
Professor Gotches
November 1, 2014
Article: What are Commodities Futures? Commodities future is an agreement in which to buy or sell a commodity prices change on a daily basis. It is like of the prices do up then the buyer makes money. The reason for this is because he gets a product for a lower price and then sells it at today’s higher price. The way commodities future is by being traded in an open market is that the values are set by commodities traders and analysts that spend all day researching their particular commodity and their forecasts are based on the information for today. There are times that speculators will give a higher bid of a commodity to make a profit especially if a crisis happens and they feel that there will be a shortage of that product. When traders see the price of commodities skyrocketing they will create a bidding war and drive prices even higher. Example would be like maybe a flood or earthquake and people will be buying a lot of supplies so there would be a shortage of water, batteries or even flashlights, those will be the items that would get the higher bids. The best way to invest in or monitor commodities futures by commodities ETF or commodities mutual fund, these are either a single number which takes an account of a big part of the commodities future during any given time. Commodities prices are very buoyant and the market is prevalent when it comes to fraudulent activities. So if you are not sure of yourself when it comes to commodities you might want to look at Commodities Profits, Day Trading in Commodities futures or review CTFC’s Guide to Fraudulent Activity and Education Center.
Reference
Miller, R. L., (2014) Economics Today (17th ed.) Boston: Pearson Addison- Wesley
www.economicnews/commodities