Hmmm, I'm kinda a contrarian when it comes to commodities. They are similar to a cyclical stock. And I generally don't go for cyclical stocks like phama stocks, cause they go up, and they go down. I prefer something that goes up, down a bit then up, down a bit then up.old and silver, I'm kinda with Warren Buffet on this one, to a degree. They are shiny, but their practical use is limited. Having said that I do have investments in one gold miner that has done very well recently but not on the back of their ability, just the gold spot price really.
So what is the real value of gold or silver? If you are a jeweler, it's considerable, because of the perception of value Vs the cost.
If you are staving, gold is meaningless unless you can't grow a potato. But if you can grow a potato then you are not staving. In 1845 ish when an Irish man could consume over 6kgs of potatoes daily (I'm very serious on that fact). Well Ireland was screwed.
But I digress, commodities are important, when desired. Gold is desired now, why. Well if I was a Russian atm I would also be pulling out my rubles from a Russian bank to buy gold. for me I don't need gold, silver, oil or gas. I'd rather have a potato.
Sometimes I right stuff that's rather tongue in cheek, this is an example.
Personally I don't invest in commodities, I invest in the infrastructure to get the commodities to market
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Great article to greater knowledge 👏