Sunday, August 3, 2008

Commodities for Every Portfolio



Commodity investing is mired in a myriad of stereotypes. Most have associated this asset class with high risks, poor returns and complicated transactions. Author Emanuel Balarie is on a mission to dispel these myths in his latest work, Commodities for Every Portfolio.

The basic premise of the book is deceptively simple. The commodity investor has very little to lose because despite how volatile markets may be, the value of a commodity will never go down to zero. The same cannot be said of any other financial instrument, including cash and equities.

Despite its relative obscurity, I feel that the work is splendidly written. Chapters are given ample time to develop before the author moves on to the more complicated instruments such as futures and derivatives. A special focus is given to gold, in tandem with the author’s high regard for this asset class. The book ends off with a brilliant analysis of the different types of commodities available and its potential pitfalls.

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