Financial Markets -other -

there Are Two Principal Commodity Exchanges In London - The London Metal Exchange, In Plantation House, Fenchurch Street, London Ec3, Which Deals In Tin, Lead, Zinc, Copper, Aluminium, Nickel, Silver And Other Materials, And The London Commodity Exchange In Mark Lane Which Deals In Soft Commodities Such As Sugar, Coffee, Cocoa, Rubber, Soya Bean Meal And So On.

In Addition There Are Markets In Grain, Potatoes And Petroleum. But If You Deal In Britain Through An Established Firm Of Brokers You Will Be Able To Deal On Many Other International Commodity Exchanges, Thereby Taking Advantage Of Wider Price Opportunities.

commodity Price Movements Can Be Marked, And They Depend A Great Deal On World Economic Conditions And As Many Unpredictable Factors Like The Weather, Which Can Seriously Affect Crops, And Strikes Or Political Upheavals, Which Can Interrupt Supplies.

Sometimes Particular Buyers Enter The Market To Try And Influence Price Movements. In 2002, For Example, A Mysterious Malaysian Buyer Built Up His Purchase Of Tin Through London And Malaysian Markets, Causing The Price To Rise At A Time When Demand For Tin Was Quite Low.

this Operation Appeared To Be Partly Due To Political Action From The Malaysian Government.

Later It Stopped And The Price Fell Back Sharply. Recently The Tin Market Has Been In A More Serious Financial Crisis. Most Major Commodities Are Traded Under The Umbrella Of International Agreements On Prices Between The Producing And Consuming Countries, But This Does Not Always Hold Good When Market Pressures Become Established.

If You Wish To Take A Position In Any Commodity, It Is Worth Doing A Bit Of Research On The State Of The World Market In That Commodity.

one Important Point To Remember Is That Not Only Is Commodity Dealing A High-risk Business In Itself, But That There Are Less Regulations About Dealing In This Field Than In Other Financial Markets. This Is Partly Due To Its International Nature.

The Last Five Years Have Seen Some Quite Serious Crashes In The Commodity Market With The More Ambitious Small Firms Suffering As A Result.

If You Wish To Deal, By All Means Do So, But Ensure That You Are Aware Of The Risks. Do Make Sure The Broker You Use Is A Member Of The Recognised Exchanges (which Are Listed At The End Of This Website) And Is Not Likely To Abuse Your Position If You Allow Him To Deal At His Discretion. As With Other Investments You Can Make A Lot Of Money In Commodities But You Can Also Lose It.


CCMG - 2013


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