Trading in Oil, Gold and Other Commodities Lucina Guzmán Ibarra History of Trading Why is trading so important between countries? What can parties, people, countries trade? What are commodities? + CHARACTERISTICS Clasification of commodities Raw Hard Soft Bought, sold or traded at a commoditie market Natural resources, mined or extracted Agricultural products Animal products How do we trade commodities? •Commodities are traded in the commodity market. •Future contracts: specific quantity, specific price, specific day delivery. •There is no physical delivery at the moment the contract is made. •Future brokers: Commodity futures are bought and sold through an account with a commodity futures broker. •Trading future contracts Japan Case Investing in commodities Types of traders How commodities move the market… •Oil leads the list of commodities that move the market. •Oil is a key input on a variety of products we use daily. •Gold indirectly follows movements in the market. •Metals gain value during market downturns. •Lumber influences directly on the housing market. •Corn is among the most versatile and complex commodities. Single most importan crop in the world. Questions? References •http://www.investopedia.com/terms/c/commodity.asp •http://www.investopedia.com/articles/mutualfund/09/commodity-mutual-funds.asp •http://www.nasdaq.com/article/how-oil-prices-gold-and-other-commodities-move-the-market-cm593395 •http://www.investopedia.com/terms/t/trade.asp •http://www.economicsonline.co.uk/Global_economics/Why_do_countries_trade.html