The best place for an investment in rising commodity prices is the stock market and there especially the ETF department. The reason for commodities like oil near all-time highs is twofold. For one, it is a weakening dollar and then it is the constraint of the resources themselves.
The former reason is compensated by the American stock market directly. If the dollar goes down, the stock market goes up. Nowadays the market values stock companies independently of the currency their stocks are quotes in. Looks like investors worldwide have more trust in American companies than in their government.
Of course, the dwindling resources cannot be compensated by anything. But you can profit by trading them directly via futures or more indirectly by using ETFs. It is even possible to single out specific stocks that are commodity centered. In a world of sovereign debt that will never be paid back fully and limited resources of fossil energy, there is only one solution for the investor. Become a trader, or better, become a semiautomated trader! But don’t become a robot…
Commodity prices are on the run, but they will not deliver the straight runway to investors heaven. There will be ups and downs, because much of the momentum is psychological. Prices are tremendously overshooting at times on a very swingy long-term trend that only roughly resembles the ever changing balance of demand and supply.
Helpful could be a source of trading signals for ETFs from someone who thinks of them as trading vehicles and not long-term investments. Gold, silver and oil will go up even more than they did already. It will just not be the easy straight trend.
The right thing to do in an accelerating world of changes is to go with the swings. Don’t bank on the linear fundamental idea and invest in commodity ETFs. Swing trading ETFs will reward you with a multiple of what the simple buy and hold investor could achieve.