Is it the Right Time for Commodity St...
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Jonathan Yates
Is it the Right Time for Commodity Stocks?

For all of its many attributes, the stock market allows for investors to buy into a wide range of asset classes of all sizes.  That is particularly so with commodity investing, which permits an individual to buy shares of resources in the oil, gold, copper, pork, and other industries without having to take actual delivery of the product.  The publicly traded companies range in size from some of the biggest such as Exxon Mobil (NYSE: XOM) and Barrick Gold (NYSE: ABX), to growing small caps with tremendous potential, such as Americas Petrogas (TSX: BOE), Octagon 88 (OCTBB: OCTX), and Wishbone Gold PLC (PINK: WISHY).  The firms operate from all over the world with Exxon Mobil in Texas, Barrick Gold and Americas Petrogas from Canada, Octagon 88 based in Switzerland, and Wishbone Gold PLC in Gibraltar.

No matter where the headquarters is, these commodity firms operate around the world.

Exxon Mobil does business in more than 150 countries from its Houston headquarters.  Although a small cap, Octagon 88 has holdings with “Big Oil” potential in Canada.  The same is true with the shale resources owned by Americas Petrogas in Argentina.  Barrick Gold has extensive operations in Africa, Latin America, and Australia.  Wishbone Gold PLC also has valuable blocks in Australia, in the Queensland Territory.

The current policies of global central bankers make commodity stocks even more appealing.

Due to the massive creation of paper money, investors prefer commodities.  But many are still undervalued.  A recent article in Barron’s put the value of Barrick Gold at $44 a share even though it is trading for around $18.50.  The investment community agrees as TD Securities just recommended Barrick Gold.  Beaufort Securities just recommended Wishbone Gold PLC.  As a result of these policies, oil stocks are also favored by investors.

The stock market is an ideal way to invest in commodities though publicly traded companies.  The investor benefits from the management of the company and the overall value of the enterprise.  Raw oil, gold, silver and other commodities do not pay dividends to the owners as do Exxon Mobil and Barrick Gold, either.



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