There are many ways that one can go about buying materials. As most scrap metal buyers chicago il know, you can actually get your hands on the physical goods. The key in that instance is knowing that you have enough storage space to keep the materials secure.
Short Term Investment
The other way to play materials is through an investment in the stock market for companies that mine or process precious resources. The stories at the links below highlight a potential opportunity for savvy investors looking to get in on the materials sector which has not performed as well as the broader market in the past year. However, the one thousand pound elephant in the room is named China when it comes to materials stock investment. There is growing concern that the global economy is slowing down after a pretty solid run in the last decade plus since the great recession. There are various schools of thought on this topic, but China recently cut back its growth forecasts and is thought to be hedging its bets and taking prudent action to prepare for growth curtailment.
Aside from the near term global economic concern, the future for materials is bright. The basic macro trend of a increasing global population that will drive up demand and decrease supply is an undeniable force that will put upward pressure on material prices. The only caveat to that is the price of gold which tends to do better when there is global uncertainty. Therefore, it is prudent for a materials investor to hold a basket of commodities. The goal of the basket of commodities is to make sure that as an individual investor, you aren’t over exposed to fluctuation in one commodity. The world has seen volatility with almost every commodity, and it can cause extreme short term anxiety if you are overexposed to that individual commodity.
Big Picture Analysis
The materials landscape is often thought of as vanilla and not as interesting as other sectors. However, materials provide the basis for everything that we know and love. There isn’t enough thought in society today about resource development and conservation. When you hear about such topics, it often gets very political and emotional. Each side of the aisle in the United States government tries to use talking points to win an argument rather than rationally looking at the problems that we face and trying to find real life solutions to them. The frustration that comes from this for a global citizen is that ultimately no action is taken because division is really the end result. This needs to change and emotion needs to be taken out of the debate so that we can move forward. The truth is that we all share this planet and every country in the world needs to be part of the solution. If we focus on the problem and not try to win arguments it will put us on the right path to come up with practical solutions.