Best way to play a commodity rally without futures.

Discussion in 'Commodity Futures' started by Bomp, Jan 5, 2021.

  1. El Trado

    El Trado

    The daily trading volume average for NOK is 119 billion compared to 114 billion for the MXN, so the liquidity should be better (daily trading volume, Bis.org, April 2019)

    NOK is actually the 14th most traded currency, while MXN is just behind

    CLP is only 19 billion. So I guess it is more challenging.
     
    #11     Jan 6, 2021
  2. Bomp

    Bomp

    CLP trades between usd 1.2-2bn daily if you include local spot and NDF’s. I think your figures above include rolls and spreads.
     
    #12     Jan 6, 2021
  3. El Trado

    El Trado

    Didn't get too close into the details.. The source I used is here: https://www.bis.org/statistics/rpfx19_fx_annex.pdf
     
    #13     Jan 6, 2021
  4. Bomp

    Bomp

    Yes, that data will include all trades. Pure spot in MXN if I remember correctly is closer to 26bn.
     
    #14     Jan 6, 2021
  5. bone

    bone

    There are some really good ideas here - my suggestion would be to temper your expectations. Even a pure play ETF is not going to provide returns like a futures contract.
     
    #15     Jan 6, 2021
    caroy likes this.
  6. Bomp

    Bomp

    Agree. But I am looking for a longer term position for the a small IRA I actively manage. Already had oil plays, now I need to add some metals and soft commodities.
     
    #16     Jan 6, 2021
    bone likes this.
  7. taojaxx

    taojaxx

    Vanguard Commodity Strategy Fund (VCMDX). Beats the heck out of the Bloomberg Commodities Benchmark thanks to active management of maturities to avoid contango depletion. They discourage in and out trading though. Just sit there and watch it grow. One of my best 2020 moves (and I did very well last year).
     
    #17     Jan 6, 2021
    bone likes this.
  8. Nine_Ender

    Nine_Ender

    Good for a passive investor but active trading of stocks is better in these really good recovery phases. I find this is one of the few areas the TSX is a really good place to trade because the stocks are highly inefficient in recognizing value and tend to oversell on bad news or commodity price drops. I attribute this to the conservative mentality of many Canadian investors and fund managers. Does require some patience at times.
     
    #18     Jan 7, 2021