How To Diversify Portfolio to Oil Gas Gold Rubber Palm Commodities

Very often, the term diversifying your portfolio crops up whenever things aren't doing so well and especially when there is uncertainty if good times are sustainable. Not putting all your eggs in one basket is a adage so common even an egg seller can start claiming he invented McEgg to diversify his poultry farm business.

So we have our stocks. Blue chips. And trendy tech stocks. And possibly 1-2 properties. Then next the metals are getting a nice warm heat these days - gold and silver. The not so distant past 2008, oil prices were hovering above $150 USD. Today when oil prices are about to break $100 to $110 USD, airlines are scrambling their F5 (refresh button not the fighter jet!) to start imposing fuel surcharges which distorts the customers final price tally - where is the nett price battle cry.

So nett is never final until all these ancillary cost, surcharges, fees, taxes are fully factored in - totally an enormous 30-60% more than the quoted rack price of an air ticket.

While those bankers and financial vampires are celebrating their (again) new found wealth, supersize fat bonus and stock options, because sales exceeded last 2 year's deals (2008-2009 were the Global Financial Crisis years remember?), we are left wondering - why are we left behind? Why can't we have bought oil when it was $50 USD during the crash? Won't we have made 100-200% supernormal profits?

Diversifying With HY Markets:
Trade in all capital markets namely - Oil/Gas, Metal (Gold, Silver, Platinum, Palladium), Commodities (Palm Oil, Rubber), Stocks
Commission free trading (remember nett price above?) - Trade costs built into bid-offer spread structure, you get to see your profits instantly without recalculating costs
Authorised and regulated by the Financial Services Authority of United Kingdom (http://www.fsa.gov.uk/Pages/About/What/index.shtml)
30 years of operational expertise - regional offices in London, Dubai, United Arab Emirates and Hong Kong, China.
LONDON OFFICE:
3rd Floor 28 Throgmorton Street,
London EC2N 2AN, United Kingdom
Tel : +44-207-330-9021

UNITED ARAB EMIRATES OFFICE (UAE):
Level 5, Gate Precinct Building 4,
Dubai International Financial Centre,
Dubai United Arab Emirates

HONG KONG OFFICE:
10th Floor,
9 Queens Road Central,
Hong Kong

Multiple Trading Platforms - integrated multi platform web based single interface
Halal and Syariah compliant systems with Islamic laws - deposits, accounts, transactions can be requested to be in compliance to Islamic rules and regulations regarding investments and finance methodology. (at the account opening main page, there are options for "Account Type" - Standard Islamic Account 750 USD, Mini Islamic Account 50 USD and Premium Islamic Account 2500 USD)
http://www.hymarkets.com/servlet/track?campaignID=70120000000AS5B&a_aid=c52a4fec

  

Accumulate Golden Agri palm oil demand skyrocketing

Recent political scenario across the Middle East and North Africa (MENA) region seems to suggest the winds of change, the velvet revolution is beginning to commence there - whether at a gradual pace or a huge fast pattern. Commerce has stopped. Trucks stopped. And food supply stopped.

The demand outstrips supply. The demand for palm oil in these region will push a commodity rush.

At the other end of the world, huge, gradual increase in consumption and demand in India and China is not relenting. Demand outstrips supply again.

Now supply side economics. There is a downfall! Palm oil production from FFB has been going down the past quarters - flooding, rain, volcano - at the top producing nations - Indonesia and Malaysia - has reduced supply tremendously.

With a special tax by the governments of these countries, there is no doubt the cost and thus the final price of palm oil will gain handsomely. Prices are expected to reach 4000 RM this year.

Accumulate on Golden Agri, the second largest palm oil producer in Indonesia. Current prices still hovering at 70 cents (SGD) are so attractive you cannot miss it.

Palm Oil Commodity Fight - Wilmar versus Golden Agri

Palm Oil or Crude Palm Oil (CPO) dominated the headings when oil prices were hovering over $150, as a potential alternative biofuel for vehicle usage.

And rightly so, I have been writing some articles on Lithium as a new bet for hybrid car demand. Hybrid car batteries need Lithium, and so this commodity will heat up soon.

So back to palm oil. Besides being a biofuel, the main usage is for cooking oil, basic daily consumption, making soap and many other fast moving consumer goods (FMCG). Now the toss up surely is to look at the largest palm oil producers or harvesters. Who are the players?

Wilmar is the largest, and the current price is over $7.00
Next is Golden Agri, and the current price is around 65 cents.

Both companies own large tracts of palm oil producing fields in Indonesia - Sumatra, Kalimantan, Sulawesi. Labour cost is relatively low.

Perhaps the big simple question of investing is to go for the number 1. Wilmar. My suggestion instead is to buy into Golden Agri - 10 lots of Golden Agri is equal to 1 lot of Wilmar. And when price fluctuates, the investor has an easier way to divest out of several lots instead of holding to 1 large costlier lot.