{"id":7250,"date":"2025-11-04T02:55:00","date_gmt":"2025-11-04T05:55:00","guid":{"rendered":"https:\/\/elinversordebolsillo.com.ar\/?p=7250"},"modified":"2025-03-14T21:52:23","modified_gmt":"2025-03-15T00:52:23","slug":"28-commodities","status":"publish","type":"post","link":"https:\/\/elinversordebolsillo.com.ar\/en\/28-commodities\/","title":{"rendered":"28 \u2013 Investing in Commodities: Gold, Oil and Other Raw Materials"},"content":{"rendered":"

Lesson 28 \u2013 The Best Free Finance Course in History<\/p>\n\n\n\n

In this lesson, we'll talk about commodities: how their prices are determined and how investors can buy or sell them without having to have a barrel of oil at home.<\/em><\/strong><\/p>\n\n\n\n

Course index:<\/p>\n\n\n\n

    \n
  1. Basic Concepts of Money and Personal Finance<\/strong><\/a>
    <\/strong>Introduction to the value of money, the importance of saving, and spending control.<\/li>\n\n\n\n
  2. Budgeting and Financial Planning<\/strong><\/a>
    <\/strong>Create a personal budget, manage income and expenses, and set financial goals.<\/li>\n\n\n\n
  3. Inflation and Purchasing Power<\/strong><\/a>
    <\/strong>Explanation of how inflation affects the value of money over time.<\/li>\n\n\n\n
  4. Interest Rates and Time in Finance<\/strong><\/a>
    <\/strong>Differences between simple and compound interest rates and their importance in investments.<\/li>\n\n\n\n
  5. How to protect your savings. Protect yourself from scams.<\/strong><\/a>
    How to protect your money from the scams that abound today<\/li>\n\n\n\n
  6. Basic Savings Instruments<\/strong><\/a>
    <\/strong>Explanation of savings accounts, term deposits, and how they work.<\/li>\n\n\n\n
  7. Introduction to the Stock Market<\/strong><\/a>
    <\/strong>Basic concepts of the stock market and its role in the global economy.<\/li>\n\n\n\n
  8. Actions: What They Are and How They Work<\/strong><\/a>
    <\/strong>Explanation of stocks, types (common and preferred), and how to invest in them.<\/li>\n\n\n\n
  9. Bonds: What They Are and How They Work<\/strong><\/a>
    <\/strong>Differences between corporate and government bonds, and their importance in diversification.<\/li>\n\n\n\n
  10. Risk vs. Return on Investments<\/a>
    <\/strong>Concept of risk and how it affects investment choices.<\/li>\n\n\n\n
  11. Diversification and Creation of Basic Portfolios<\/a>
    <\/strong>Basic diversification principles to reduce risk in an investment portfolio.<\/li>\n\n\n\n
  12. What is an ETF and How Does it Work?<\/a>
    <\/strong>Introduction to ETFs (exchange-traded funds) and how they track market indices.<\/li>\n\n\n\n
  13. What is a Mutual Fund?<\/a>
    <\/strong>An explanation of mutual funds and their benefits for beginners.<\/li>\n\n\n\n
  14. Financial education for the family<\/a><\/strong>
    All the information you need to make ends meet.<\/li>\n\n\n\n
  15. Economic Cycle and its Impact on Investments<\/a>
    <\/strong>How the stages of expansion and contraction in the economy affect investments.<\/li>\n\n\n\n
  16. Growth Stocks vs. Value Stocks<\/a>
    Learn about different types of actions and what to expect from each one.<\/li>\n\n\n\n
  17. Fundamental Analysis of Stocks<\/a>
    <\/strong>Explanation of how to analyze a company's value based on its fundamentals.<\/li>\n\n\n\n
  18. Basic Technical Analysis: Charts and Patterns<\/a>
    <\/strong>Introduction to basic technical analysis tools, such as trend lines and candlestick patterns.<\/li>\n\n\n\n
  19. Options: What They Are and How They Work<\/a>
    <\/strong>Basic concepts of call and put options and their uses in investments.<\/li>\n\n\n\n
  20. Futures: What They Are and How They Work<\/a>
    <\/strong>Introduction to futures contracts and their application in investment and speculation.<\/li>\n\n\n\n
  21. Introduction to Cryptocurrencies<\/a>
    <\/strong>What is digital money, how it was created, and the characteristics of Bitcoin and other cryptocurrencies.<\/li>\n\n\n\n
  22. Blockchain and its Importance in Finance<\/a>
    <\/strong>How the technology behind cryptocurrencies works and their applications in finance.<\/li>\n\n\n\n
  23. Risks in Cryptocurrency Trading<\/a>
    <\/strong>Volatility, fraud, and regulations in the cryptocurrency market.<\/li>\n\n\n\n
  24. Leverage Principles and its Risk<\/a>
    <\/strong>What it means to trade with leverage and the associated risks.<\/li>\n\n\n\n
  25. Investor Psychology and Emotion Management<\/a>
    <\/strong>How emotions influence investment decisions and tips for managing them.<\/li>\n\n\n\n
  26. What is Algorithmic Trading<\/a>
    <\/strong>Basic explanation of the use of algorithms to perform operations in the financial market.<\/li>\n\n\n\n
  27. Financial Analysis of Companies<\/a>
    <\/strong>Introduction to basic financial statements and their interpretation for valuing companies.<\/li>\n\n\n\n
  28. Investing in Commodities: Gold, Oil, and Other Goods<\/a>
    <\/strong>How commodity investments work and their role in diversification.<\/li>\n\n\n\n
  29. Advanced Investment Strategies: Hedging and Derivatives<\/a>
    <\/strong>Introduction to strategies for managing risks through financial derivatives.<\/li>\n\n\n\n
  30. Creating and Managing a Complete Portfolio<\/a>
    <\/strong>Practical application of prior knowledge to build and manage a diversified portfolio.<\/li>\n<\/ol>\n\n\n\n
    \"Banner<\/a><\/figure>\n\n\n\n

    <\/p>\n\n\n\n

    Investing in commodities is like immersing yourself in the heart of the global economy, and in Argentina it has a special flavor thanks to our natural wealth and our history as an exporter. Commodities are basic goods such as gold, oil, soybeans, corn, and copper, which are traded on international markets and serve as the basis for industries, food, and economic refuges. <\/p>\n\n\n\n

    They're not company stocks or government bonds; they're tangible resources that we all use every day, from the fuel that fills your car to the wheat that ends up in your bread. In a country like Argentina, where the countryside and natural resources are pillars of the economy, investing in commodities offers unique opportunities, but also challenges due to volatility and dependence on the global market.<\/p>\n\n\n\n

    This article will guide you through understanding commodities, their characteristics and crucial role in the economy, the specific advantages of investing in gold and oil, and the factors that drive their prices. We'll explore each aspect in depth, with local examples and a relaxed tone, as if we were chatting after reading The Pocket Investor at a grill at Carlos Keen's.<\/p>\n\n\n\n

    Characteristics of commodities and their role in the economy<\/h2>\n\n\n\n

    Commodities have characteristics that make them distinct from other financial assets. They are standardized and fungible goods, meaning that a barrel of Brent crude oil is the same in London as it is in Houston, as long as it meets specifications. They are classified into two broad groups: soft commodities (agricultural products such as soybeans, corn, coffee, or sugar) and hard commodities (minerals and energy products such as gold, silver, copper, or oil). This standardization allows them to be traded on global markets such as the Chicago Mercantile Exchange (CME) or the London Metal Exchange (LME), where prices are set by supply and demand.<\/p>\n\n\n\n

    A key characteristic is its cyclical nature. Prices rise and fall depending on harvests, extraction, or industrial demand. For example, a good year for soybeans in Argentina can lower prices due to excess supply, while a drought can send them soaring. In Argentina, agricultural commodities such as soybeans and corn account for more than 60% of total exports, according to INDEC data from 2023, making them a vital economic driver. This affects the exchange rate, the trade balance, and even employment in rural areas.<\/p>\n\n\n\n

    Their role in the global economy is immense. Oil powers transportation and industry, gold acts as a safe haven in crises, and metals like copper are essential for technology. In Argentina, the Vaca Muerta boom has put oil and gas on the map, while gold attracts investors seeking protection from inflation. Commodities also serve as diversifiers in a portfolio. When stocks fall due to a crisis, gold or oil can rise, offsetting the losses. This is especially useful in a country where the stock market can be shaken by political or economic news.<\/p>\n\n\n\n

    The local impact is enormous. For example, an increase in the international price of soybeans benefits Argentine producers, but also puts pressure on the Central Bank to manage its dollar reserves. In 2022, a year of drought reduced the soybean harvest by 2014-2023, raising global prices and leaving Argentina with fewer exports. This shows how commodities not only move markets but also influence daily life, from the price of bread to the value of the peso.<\/p>\n\n\n\n

    Advantages of investing in gold and oil<\/h2>\n\n\n\n

    Investing in gold and oil has benefits that make them attractive, especially in an Argentine context where economic stability is a constant challenge. Let's break them down in detail so you can see why these commodities are a popular option.<\/p>\n\n\n\n