Investing In Commodities or Equities?

Which of these two investments would you bet your financial future on?

Give me a good reason.

Commodities. The reason is that price of a commodity can never go to zero. there is always value. A company can go bankrupt and make the stock worthless. The biggest myth is that commodities are riskier than stocks. What make commodities appear more risky is the use of margin. To buy a stock, you put up full value. a commodity contract only requires a fraction to be put up. If you research a commodity and put up full value for margin, the volatility is not that much greater than any individual equity. But you should never bet the farm on one instrument. Diversity is key.

If you're asking this question, then you are somewhat of a beginner, and commodities are in no way for the beginner. Stick with mutual funds if you don't want to learn much about stocks and trading, equities if you are a regular trader, and commodities only if you are a pro.

I wouldn't bet my financial future on anything. Commodities are a nice way to get wiped out in an expedient fashion. Equities will allow you to suffer a slower death. You might want to start by looking at ETFs.

Stick with equities - just normal buying and selling.

Then after maybe a year you can your hand at short-selling equities.

Then after another year you can experiment with options on equities (puts & calls).

Then after another year you can start trading stocks that follow commodities (such as GLD, USO, GSG etc)

Then and ONLY then would I even say to DARE trying the pure commodities futures market. Reason being, it can wipe out a trader faster than hitting the [C]lear button on your calculator! Yup, that damn fast.