In this presentation, CPM Group’s Jeffrey Christian discusses some of the issues that institutional investors find as potential obstacles when deciding on the wisdom in investing in commodities.
Their hesitations usually include the following six questions:
1. How do you quantify commodity returns?
2. How do you value commodities?
3. How volatile are commodities prices relative to other asset values?
4. Are commodities good inflation hedges?
5. How do investors generate alpha with commodities?
6. Which commodities indices should be used in research measuring commodities performance?
Jeff briefly goes through these questions to shows the correct way investors should look at Gold, Silver, and other commodities.