33:799:305 Lecture 1: 799:305 Lecture : 799:305 Lecture : 799:305 Lecture : 799:305 Lecture : executive summary

• School: Rutgers University
• Department: Supply Chain Management
• Course: 33:799:305
• Professor: All

Document Summary

Commodity prices are similar to stock, where their prices increase during times of inflation. There is no perfect time to buy commodities though there are strategies one can use to make the right purchasing decisions. Investors often purchase commodities during two different periods one being when the commodity"s price is low and considered good quality. The second is when the commodities continuously hit multi-year highs, and the investor wants to be part of the trend. Over the decades, each commodity starts to even out and keeps pace or exceeds the inflation rate. The best strategy is a buy and hold strategy regardless of when the commodity is purchased. Commodities tend to provide a good return after being held for a few decades if the index is broad. Another strategy investors often use scale trading when the commodity price has multi-year lows. Making the commodity cost of production fall low as well as the price dropping very low.