Commodities For Dummies, 2nd Edition

pt. III. The power house: how to make money in energy -- 10. It's a crude, crude world: investing in crude oil -- Seeing the crude realities -- Examining global reserve estimates -- Looking at production figures -- Checking out demand figures -- Eyeing imports and exports -- Going up the crude chain -- Making big bucks with big oil -- Oil companies -- Investing overseas -- 11. Welcome to Gas Vegas, baby! Trading natural gas -- Looking at natural gas applications -- Industrial uses of natural gas -- Natural gas in your home -- Natural gas's commercial uses -- Generating electricity with natural gas -- Natural gas and transportation -- Liquefied natural gas -- Investing in natural gas -- Trading nat gas futures -- Nat gas companies: the natural choice -- 12. Keeping it natural: investing in renewable energy -- Getting to know renewable energy -- Investing in solar energy -- Trading in wind energy -- Betting on biomass -- 13. Fuel for thought: looking at alternative energy sources -- Digging up new energy sources -- Reexamining King coal: not as scary as you think -- Coal hard facts -- Paint it black -- Investing in nuclear power -- Uranium equities -- Uranium ETF -- Uranium futures -- Trading electricity -- Brushing up on current affairs -- Investing in the power industry -- 14. Totally energized: investing in energy companies -- Profiting from oil exploration and production -- Going offshore -- Staying on dry land -- Servicing the oil fields -- Investing in refineries -- Becoming an oil shipping magnate -- Transportation supply and demand -- Crude oil ships ahoy! -- Petroleum shipping companies -- Avoiding industry risk.;pt. IV. Pedal to the metal: investing in metals -- 15. All that glitters: investing in gold, silver, and platinum -- Getting to know the gold standard -- Finding ways to invest in gold -- Investing in silver -- Investing in platinum -- 16. Metals that prove their mettle: steel, aluminum, and copper -- Building a portfolio that's as strong as steel -- Steely facts -- Investing in steel companies -- Aluminum: Illuminating the details -- Just the aluminum facts -- aluminum futures -- Aluminum companies -- Paying a visit to Dr. Copper -- Quick copper facts -- Copper futures contracts -- Copper companies -- 17. Weighing investments in heavy and not-so-heavy metals -- Palladium: metal for the new millennium -- Zinc and grow rich -- You won't get nickel and dimed by investing in nickel -- 18. Mine your own business: unearthing the top mining companies -- Considering diversified mining companies -- BHP Billiton -- Rio Tinto -- Anglo-American -- Checking out specialized mining companies -- Newmont Mining: gold -- Silver Wheaton: silver -- Freeport McMoRan: copper -- Alcoa: aluminum -- Arcelor-Mittal: steel -- Making money during the mining merger mania.;pt. VI. The part of tens -- 22. Ten or so investing resources you can't do without -- The Wall Street Journal -- Bloomberg -- Commodities-Investors.com -- Nightly Business Report -- Morningstar -- Yahoo!Finance -- Commodity Futures Trading Commission -- The Energy Information Administration -- Stocks and Commodities Magazine -- Oil & Gas Journal -- National Futures Association -- 23. Top ten market indicators you should monitor -- Consumer Price Index -- EIA Inventory Reports -- Federal Funds Rate -- Gross Domestic Product -- London Gold Fix -- Nonfarm payrolls -- Purchasing Managers Index -- Reuters/Jefferies CRB Index -- U.S. dollar -- WTI Crude Oil -- 24. Top ten commodity ETFs -- PowerShares DB Commodity Index -- iPath DJ-UBS Commodity Index -- United States Oil -- United States Natural Gas -- SPDR Gold Shares -- iShares Silver Trust -- iPath DJ-UBS Aluminum TR Sub-index -- PowerShares DB Agriculture Long Index -- iPath DJ-UBS Coffee TR subindex -- Market Vectors Global Alternative Energy -- 25. Top ten investment vehicles for commodities -- Futures commission merchant -- Commodity trading advisor -- Commodity pool operator -- Integrated commodity companies -- Specialized commodity companies -- Master limited partnerships -- Exchange traded funds -- Commodity mutual funds -- Commodity indexes -- Emerging market funds.;A hands-on guide that gives you the basics on breaking into the commodities market. Learn to diversity your portfolio, measure risk, and apply market analysis techniques.;Introduction -- pt. I. Commodities: just the facts -- 1. Investors, start your engines! An overview of commodities -- Defining commodities and their investment characteristics -- Going for a spin: choosing the right investment vehicle -- The futures market -- the equity markets -- Managed funds -- Physical commodity purchases -- Checking out what's on the menu -- Energy -- Metals -- Agricultural products -- 2. Earn, baby, earn! Why you should invest in commodities -- You can't argue with success -- Why the 21st Century is the century of commodities -- Ka-boom! Capitalizing on the global population explosion -- Brick by brick: profiting from urbanization -- Full steam ahead! Benefiting from industrialization -- What makes commodities unique -- Gaining from inelasticity -- Finding a safe haven -- Hedging against inflation -- Taking time to bring new sources online -- Sell in May and go away? Definitely nay! -- Time to get down to business: commodities and the business cycle -- 3. Investing in commodities: only for the brave? -- Biting off more than you can chew: the pitfalls of using leverage -- Watch your step: understanding the real risks behind commodities -- Sovereign government risk -- Geopolitical risk -- Speculative risk -- Corporate governance risk -- Tracking commodities and the 2008 global financial crisis -- Origins of the crisis -- Overview of the crisis -- Managing risk -- Due diligence: just do it -- Diversify, diversify, diversify -- 4. Feel the love: welcoming commodities into your portfolio -- The color of money: taking control of your financial life -- Looking ahead: creating a financial map -- Figuring out your net worth -- Identifying your tax bracket -- Determining your appetite for risk -- Making room in your portfolio for commodities -- Fully exposed: the top ways to get exposure to commodities -- Looking toward the future with commodity futures -- Funding your account with commodity funds -- You're in good company: investing in commodity companies.;pt. II. Getting started with types of investment vehicles -- 5. Benefiting from exchange-traded funds -- Getting to know ETFs -- Accessing a variety of commodity markets through ETFs -- Taking a look at leveraged ETFs -- 6. Track and trade: investing through commodity indexes -- Checking out commodity indexes -- Why indexes are useful -- How to make money by using an index -- From head to toe: uncovering the anatomy of a commodity index -- Cataloging the five major indexes -- the S & P Goldman Sachs Commodity Index -- Reuters/Jefferies Commodity Research Bureau Index -- Dow Jones-AIG Commodity Index -- Rogers International Commodities Index -- Deutsche Bank Liquid Commodity Index -- Determining which index to use -- 7. Show me the money! Choosing the right manager -- Mutually beneficial: investing in commodity mutual funds -- Asking the right questions -- Taking a look at what's out there -- Mastering MLPs -- The ABCs of MLPs --Cash flow is king -- The nuts and bolts of MLP investing -- Risk and MLPs -- Relying on a commodity trading advisor -- Jumping into a commodity pool -- 8. Exploring commodity exchanges, brokers, and trading accounts -- Why do we have commodities exchanges, anyway? -- Identifying the major commodity exchanges -- Opening an account and placing orders -- Owning a piece of an exchange -- 9. Back to the future: getting a grip on futures and options -- Taking the mystery out of futures and options -- How to trade futures contracts -- Who trades futures? -- Keeping track of all the moving pieces -- Trading futures on margin -- Figuring out where the futures market is heading --Trading with options -- Understanding trader talk.;pt. V. Going down to the farm: trading agricultural products -- 19. Breakfast of champions: profiting from coffee, cocoa, sugar, and orange juice -- Giving your portfolio a buzz by investing in coffee -- Coffee: it's time for your big break -- The coffee futures contract: it may be your cup of tea -- Ordering up investments in gourmet coffee shops -- Warming up to cocoa -- Investing in sugar: such a sweet move! -- Orange juice: refreshingly good for your bottom line -- 20. How to gain from grains: trading corn, wheat, and soybeans -- Field of dreams: investing in corn -- Welcome to the bread basket: investing in wheat -- It's not just peanuts: trading soybeans -- Soybeans -- Soybean oil -- Soybean meal -- 21. Alive and kicking! Making money trading livestock -- Holy Cow! Investing in cattle -- Live cattle -- Feeder cattle -- Lean and mean: checking out lean hogs -- You want bacon with that? Trading frozen pork bellies. Get more bang for your buck in the commodities market and start trading today While Wall Street has been troubled, commodity markets have been soaring. Since 2002, commodities have outperformed every other asset class including stocks, mutual funds, and real estate. This hands-on, friendly guide gives you the basics on breaking into the market, dispels common myths, and shows you how to implement a wide range of trading and investing strategies. It also helps you diversify your portfolio, measure risk, and apply market analysis techniques. • Expanded coverage of the types of commodities available to investors • Advice on how to manage the risks and rewards of commodities • Updated examples and information on SEC rules and regulations (and tax laws) Featuring time-tested rules for investment success Commodities For Dummies helps you minimize risk, maximize profit, and find the shortest route to Easy Street. Commodities For Dummies, 2nd Edition 1 About the Author 7 Contents at a Glance 11 Table of Contents 13 Introduction 21 About This Book 22 Conventions Used in This Book 23 Foolish Assumptions 24 How This Book Is Organized 24 Icons Used in This Book 26 Where to Go from Here 27 Part I: Commodities: Just the Facts 29 Chapter 1: Investors, Start Your Engines! An Overview of Commodities 31 Defining Commodities and Their Investment Characteristics 33 Going for a Spin: Choosing the Right Investment Vehicle 35 Checking Out What’s on the Menu 39 Chapter 2: Earn, Baby, Earn! Why You Should Invest in Commodities 43 You Can’t Argue with Success 44 Why the 21st Century Is the Century of Commodities 47 What Makes Commodities Unique 53 Time to Get Down to Business: Commodities and the Business Cycle 58 Chapter 3: Investing in Commodities: Only for the Brave? 61 Biting Off More Than You Can Chew: The Pitfalls of Using Leverage 62 Watch Your Step: Understanding the Real Risks behind Commodities 63 Tracking Commodities and the 2008 Global Financial Crisis 66 Managing Risk 70 Chapter 4: Feel the Love: Welcoming Commodities into Your Portfolio 77 The Color of Money: Taking Control of Your Financial Life 77 Looking Ahead: Creating a Financial Road Map 79 Making Room in Your Portfolio for Commodities 84 Fully Exposed: The Top Ways to Get Exposure to Commodities 86 Part II: Getting Started with Types of Investment Vehicles 91 Chapter 5: Benefiting from Exchange-Traded Funds 93 Getting to Know ETFs 93 Accessing a Variety of Commodity Markets through ETFs 95 Taking a Look at Leveraged ETFs 99 Chapter 6: Track and Trade: Investing through Commodity Indexes 101 Checking Out Commodity Indexes 102 From Head to Toe: Uncovering the Anatomy of a Commodity Index 103 Cataloguing the Five Major Indexes 105 Determining Which Index to Use 114 Chapter 7: Show Me the Money! Choosing the Right Manager 117 Mutually Beneficial: Investing in Commodity Mutual Funds 117 Mastering MLPs 122 Relying on a Commodity Trading Advisor 129 Jumping into a Commodity Pool 132 Chapter 8: Exploring Commodity Exchanges, Brokers, and Trading Accounts 133 Why Do We Have Commodities Exchanges, Anyway? 134 Identifying the Major Commodity Exchanges 135 Ready, Set, Invest: Opening an Account and Placing Orders 139 Owning a Piece of an Exchange 147 Chapter 9: Back to the Future: Getting a Grip on Futures and Options 151 Taking the Mystery out of Futures and Options 152 The Future Looks Bright: How to Trade Futures Contracts 152 For a Few Dollars Less: Trading Futures on Margin 160 Taking a Pulse: Figuring Out Where the Futures Market Is Heading 161 Keeping Your Options Open: Trading with Options 163 Part III: The Power House: How to Make Money in Energy 169 Chapter 10: It’s a Crude, Crude World: Investing in Crude Oil 171 Seeing the Crude Realities 172 Going Up the Crude Chain 181 Making Big Bucks with Big Oil 184 Chapter 11: Welcome to Gas Vegas, Baby! Trading Natural Gas 191 What’s the Use? Looking at Natural Gas Applications 192 Liquefied Natural Gas: Getting Liquid Without Getting Wet 198 Investing in Natural Gas 199 Chapter 12: Keeping It Natural: Investing in Renewable Energy 205 Always Brand Spanking New: Getting to Know Renewable Energy 206 Sunny Delight: Investing in Solar Energy 208 Fast and Furious: Trading in Wind Energy 210 Betting on Biomass 211 Chapter 13: Fuel for Thought: Looking at Alternative Energy Sources 213 Digging Up New Energy Sources 213 Reexamining King Coal: Not As Scary As You Think 215 Investing in Nuclear Power: Going Nuclear without Going Ballistic 221 You’ve Been Zapped! Trading Electricity 224 Chapter 14: Totally Energized: Investing in Energy Companies 229 Bull’s-Eye! Profiting from Oil Exploration and Production 229 Oh My, You’re So Refined! Investing in Refineries 235 Becoming an Oil Shipping Magnate 238 Part IV: Pedal to the Metal: Investing in Metals 245 Chapter 15: All That Glitters: Investing in Gold, Silver, and Platinum 247 Going for the Gold 248 Get the Tableware Ready: Investing in Silver 257 Bling Bling: Investing in Platinum 261 Chapter 16: Metals That Prove Their Mettle: Steel, Aluminum, and Copper 265 Building a Portfolio That’s As Strong As Steel 266 Aluminum: Illuminating the Details 269 Paying a Visit to Dr. Copper 272 Chapter 17: Weighing Investments in Heavy and Not-So-Heavy Metals 277 Palladium: Metal for the New Millennium 277 Zinc and Grow Rich 281 You Won’t Get Nickel and Dimed by Investing in Nickel 282 Chapter 18: Mine Your Own Business: Unearthing the Top Mining Companies 285 Considering Diversified Mining Companies 286 Checking Out Specialized Mining Companies 289 Making Money during the Mining Merger Mania 294 Part V: Going Down to the Farm: Trading Agricultural Products 297 Chapter 19: Breakfast of Champions: Profiting from Coffee, Cocoa, Sugar, and Orange Juice 299 Giving Your Portfolio a Buzz by Investing in Coffee 299 Warming Up to Cocoa 304 Investing in Sugar: Such a Sweet Move! 306 Orange Juice: Refreshingly Good for Your Bottom Line 308 Chapter 20: How to Gain from Grains: Trading Corn, Wheat, and Soybeans 311 Field of Dreams: Investing in Corn 312 Welcome to the Bread Basket: Investing in Wheat 314 It’s Not Just Peanuts: Trading Soybeans 317 Chapter 21: Alive and Kicking! Making Money Trading Livestock 321 Holy Cow! Investing in Cattle 322 Lean and Mean: Checking Out Lean Hogs 326 You Want Bacon with That? Trading Frozen Pork Bellies 327 Part VI: The Part of Tens 331 Chapter 22: Ten or So Investing Resources You Can’t Do Without 333 The Wall Street Journal 333 Bloomberg 334 Commodities-Investors.com 334 Nightly Business Report 334 Morningstar 334 Yahoo! Finance 335 Commodity Futures Trading Commission 335 The Energy Information Administration 335 Stocks and Commodities Magazine 335 Oil & Gas Journal 336 National Futures Association 336 Chapter 23: Top Ten Market Indicators You Should Monitor 337 Consumer Price Index 337 EIA Inventory Reports 338 Federal Funds Rate 338 Gross Domestic Product 338 London Gold Fix 339 Nonfarm Payrolls 339 Purchasing Managers Index 340 Reuters/Jefferies CRB Index 340 U.S. Dollar 340 WTI Crude Oil 341 Chapter 24: Top Ten Commodity ETFs 343 PowerShares DB Commodity Index 343 iPath DJ-UBS Commodity Index 344 United States Oil 344 United States Natural Gas 344 SPDR Gold Shares 344 iShares Silver Trust 345 iPath DJ-UBS Aluminum TR Sub-Index 345 PowerShares DB Agriculture Long Index 345 iPath DJ-UBS Coffee TR Subindex 346 Market Vectors Global Alternative Energy 346 Chapter 25: Top Ten Investment Vehicles for Commodities 347 Futures Commission Merchant 347 Commodity Trading Advisor 348 Commodity Pool Operator 348 Integrated Commodity Companies 348 Specialized Commodity Companies 349 Master Limited Partnerships 349 Exchange Traded Funds 349 Commodity Mutual Funds 350 Commodity Indexes 350 Emerging Market Funds 350 Glossary 351 Index 361 Itzy,Kickass.so

Get more bang for your buck in the commodities market and start trading today

While Wall Street has been troubled, commodity markets have been soaring. Since 2002, commodities have outperformed every other asset class including stocks, mutual funds, and real estate. This hands-on, friendly guide gives you the basics on breaking into the market, dispels common myths, and shows you how to implement a wide range of trading and investing strategies. It also helps you diversify your portfolio, measure risk, and apply market analysis techniques.

• Expanded coverage of the types of commodities available to investors
• Advice on how to manage the risks and rewards of commodities
• Updated examples and information on SEC rules and regulations (and tax laws)

Featuring time-tested rules for investment success Commodities For Dummies helps you minimize risk, maximize profit, and find the shortest route to Easy Street.