buying commodity stocks

Many contrarian investors are wondering if the time is right to start loading up on commodities in anticipation of the next big rally.

Certainly, stocks in the sector are cheap, and we would expect many of them to double if and when a commodity recovery occurs. Stocks of smaller, riskier companies could triple or more.

Alas, we need to throw some cold water on such thoughts. It is still far too early to get excited about the prospects for commodities. Indeed, there are still significant risks since some companies in the sector are likely to go bankrupt under current conditions.  Read More…


  1. There are still countless other instruments one can invest into instead of commodities stocks. There is still fixed income stocks which have done incredibly well this year and same goes with biotech.

    There are also some good buys on TSX with strong financial sheets and a bright year ahead.

  2. Too early? Warren Buffett is famouos for saying when

  3. I still don’t understand fully what the purpose of commodities are. Anyone?

  4. Pretty much ever kind of stock type can and has been grouped into open and closed-ended funds @dillan. iShares has many types.

  5. Hmmmmmm….correct me if i’m wrong but isn’t the main issue the lack of inflation? But then maybe it means its a good time to buy since we could be on the verge of one soon.

  6. Never bought these types before but are they also sold in Funds too or does one have to buy them individually?

  7. The US Fed has given strong hints that they are going to raise interest rates. If that happens you should not buy commodities.

  8. Are there tax implecations and benefits to holding off on purchasing now?

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