Growth arrives from growing population, aging individuals and their necessities, new technology and global economies.
This phenomenon can impact consumption on commodities and companies revenues, creating opportunities for capital gains.
Derivative investment instruments such as options or futures contracts are used to take advantage of interest rates, currency exchange rates, stock indexes, and commodity prices.
Economic cycles, inflation or deflation, food and energy consumption, geopolitical instability, and production of commodity supplies can have a significant impact on derivative prices.
By being an account holder, we are able to provide you with the opportunity to participate in the same commodity and derivative markets as the worlds largest investors, multinational corporations and major banks do.
Like many other investments, this market carries a degree of risk and may not be suitable for all investors.
One of our specialities is providing immediate access to Commodity option trading.
Invest in gold, silver, oil, corn, aluminum, copper, euro, yen, stocks, coffee and sugar. Follow the trends of smart money like Hedge and Institutional Funds and profit.
You will be able to trade a full spectrum of derivatives such as options and futures contracts on the energy complex, grains, foreign currencies, precious metals, financials, meats, and softs.
Purchasing various option or futures contracts on commodities has become a way for investors to profit from significant price movements by utilizing leverage.
Whitley Trading maintains accounts with several clearing houses and trading firms as our client the safety of your funds is paramount. That's why at Whitley Trading, we recommend investing only in the regulated futures exchanges. These exchanges insure the integrity of the market system on a daily basis.
Gold - A symbol of wealth and its lure as a jewelry item becomes a popular purchased item ahead of the Indian Festivals and Christmas season.
India is one of the largest consumers of gold and from September to December over 100 festivities attracts millions of locals and of tourists across the globe.
China lust for gold is growing rapidly since Government reforms such as the relaxation of licensing and other regulations, have allowed more local and foreign companies to enter the gold market. In fact, consumers now have more choices from which to buy bullion, making China tied with India for being the largest gold consumer.
Gold demand in China is also being supported by a prosperous economy for which has created a growing middle class, and their appetite for gold could double over the next decade. In fact, jewelry demand accounted for 64% of China's demand for gold. China investment demand increased 70% for 2010.
The love of giving is the greatest in December and February; therefore, jewelry is a popular gift item.
During the summer and winter months, June to December, the jewelry fabricators and gold wholesalers begin to build inventory for the approaching Indian and Christmas festivities as well as Valentines Day. The assumption of increased demand could result in outright purchases in the market which could result in higher prices.
Alternative investments in gold have been robust these last few years as investment, retirement portfolios diversify into tangible assets versus paper ones like shares, currencies or bonds.
Gold has benefited from safe-haven investment demand amid inflation worries, global economic uncertainty and growing sovereign nations' debt.
Silver has attracted man's interest for thousands of years. In ancient times, silver deposits were plentiful on or near the earth's surface. Relics of ancient civilizations, include jewelry, religious artifacts, and food vessels formed from the durable, malleable metal.
In 1792, silver assumed a key role in the United States monetary system when Congress based the currency on the silver dollar, and its fixed relationship to gold. Silver was used for the nation's coinage until its use was discontinued in 1965.
At the turn of the century, an even more important economic function was emerging for silver, that of an industrial raw material. Today, silver is sought as a valuable and practical industrial commodity, and as an appealing investment. The largest industrial users of silver are the photographic, jewelry, and electronic industries.
Newly mined metal provides most of the needed supply, and Mexico, the United States, and Peru are the primary producers. Secondary silver sources include coin melt, scrap recovery, and dishoarding from countries where export is restricted. Secondary sources are particularly price sensitive.
Mining companies, fabricators of finished products, and users of silver-content industrial materials can use the COMEX Division silver futures and options contracts to manage their price risk. As a precious metal, silver also plays a role in investment portfolios.
Platinum is the principal metal of the six-metal group that bears its name; the other platinum group metals are palladium, rhodium, ruthenium, osmium, and iridium. All possess unique chemical and physical qualities that make them vital industrial materials.
Jewelry creates the largest demand for platinum, accounting for 51%. Automotive catalysts take 29% and chemical and petroleum refining catalysts, 13%.
Platinum is used in the computer industry and in other high-tech electronic applications since it is an excellent conductor of electricity, does not corrode, and has a low reactivity with other metals. This sector accounts for about 7% of consumption.
Platinum is among the world's scarcest metals; new mine production totals approximately only 5 million troy ounces a year. In contrast, gold mine production runs approximately 82 million ounces a year, and silver production is approximately 547 million ounces.
Supplies of platinum are concentrated in South Africa, which accounts for approximately 80% of supply; Russia, 11%; and North America, 6%.
Because of the metal's importance as an industrial material, its relatively low production, and concentration among a few suppliers, prices can be volatile. For this reason, it is often considered attractive to investors.
Oil and gasoline is the dominant energy used for automobiles. Consumption continues to increase yearly as global auto and industrial population continues to grow. Emerging economic growth lead by China, India and Brazil, continue to have a robust appetite for oil and gasoline.
During the winter and spring months of the Northern Hemisphere; January to June, the oil industry begins to build gasoline inventory for the approaching summer driving season. Spring break and summer holidays are known to bring gas guzzlers once again to our roads, lakes, parks, oceans and beaches.
This assumption of increased demand could result in outright purchases in the market which could result in higher prices. During this period, volatility could increase substantially if supplies are disrupted and as a result prices could spike higher. The winter season which starts in December and ends in April, could impact supplies if an arctic freeze takes hold of refineries, causing break downs or if snow storms disrupt transportation throughout the United States or Europe.
Other energy products in demand is heating oil, also known as No. 2 fuel oil, accounts for about 25% of the yield of a barrel of crude, the second largest "cut" after gasoline.
Heating oil accounts for approximately 80% usage in the northeast region of the United States (New York, Philadelphia, Boston) throughout the winter months for heating needs. This fuel oil product is also used in some regions throughout Canada, Europe and Russia.
During the summer and fall months; June to October, the oil industry begins to build inventory for the approaching cold weather. This assumption of increased demand could result in outright purchases in the market which could result in higher prices. During this period, volatility can increase substantially if supplies are disrupted and as a result prices could spike higher.
The Atlantic hurricane season which starts in June and ends in November, could impact supplies if a hurricane takes hold of refineries throughout the Caribbean Sea or Gulf of Mexico. This region is home to an abundance of refineries and oil platforms.
Wheat, Globally, it's the most important human food grain and global population is on the rise!
Harvest is usually in spring to earlier summer (USA). Right before and during harvest season, prices are usually weak due to a large amount of supply coming to the market at one time as well as the market has factored in crop production to be normal to meet demand. Prices tend to be trading at their lowest levels for the year during this period.
Winter planting season usually starts in September which is the recommended planting month. Historically wheat shows strength at the beginning of their planting season (production cycle). Planting after the recommended dates reduces winter survival and grain yield. Planting prior to the recommended date may unnecessarily deplete soil moisture reserves. It also increases risk of disease and may reduce winter survival. Therefore, during the planting season, volatility could increase substantially for the reason that there is little room for error. Prices could spike higher as a result of fear in supply reductions in the upcoming new crop.
It's the dominant food source for animal feed such as cattle. Also, corn is used to make U.S. ethanol, which is an additive for gasoline and is used in a variety of human food such as corn syrup.
Corn prices tend to fluctuate with the production/harvest cycles. The most pronounced seasonal trend in U.S. corn is the decline of prices from mid-summer into the harvest period. Harvest, which typically starts in September and ends in late November, adds large supplies to the marketing system. This large supply coming to the market, normally pressures prices to their lowest levels of the crop year.
Corn tends to find a bottom somewhere between December through February. A price rally starts to begin and typically extends through June or July; therefore, prices are often then near their highest level at this time of the year, because of factors associated with the old crop sales or inventories, and the uncertainty over new crop production.
During the planting and growing season (April-August), volatility could increase substantially if farmers start planting late, soil moisture is not adequate or heat stress damages the crop. Therefore, prices could spike higher as a result of supply concerns
The Foreign Exchange Market is a 4 trillion dollar day market. Currency shifting from one nation to another can affect currency exchange rates. Many investors take advantage of the exchange rates for daily or long-term trends in their prices. Trading opportunities occur when:
Demand and production cycles for commodities that are produced and paid in their nation's currency.
Changes in Central Banks monetary policy such as interest rates or economic cycles which are robust or recessionary. Usually nations with higher interest rates benefit and nations with lower ones see their currency decline globally.
Swiss Francs - Japanese Yen - Euros - British Pounds - Australian Dollars - Dollar Index
Seasonal price changes could result from changes in the supply of cattle, changes in the demand from consumers for beef, or some combination of these factors.
Demand for beef or steak; for example, tends to be strong from spring to summer. The appetite for beef significantly rises as warm weather brings barbecue pleasures to the beaches, parks or simply to the comfort of ones backyard. Barbecues are also traditional during summer holidays.
Throughout March, April and May, supply and slaughter is at the low end. This could be a result of birth cycles and mid-summer to fall high slaughter rates. During this period, volatility could increase substantially and prices could potential rise as peak barbecue season approaches. Declining or low feed cost such as corn, could also add to the volatility.
An abundance of cattle is usually added to the market from July to September creating a large supply of beef. During the fall months of September and October, barbecue season passes and the food market is usually stocked with an abundance of beef. Therefore, lower demand and high supplies pressures the cattle market.
Coffee is one of the world's most popular beverages, with over 400 billion cups consumed each year.
Brazil, Vietnam and Colombia are the top global providers. In fact, a third of the world's coffee is produced in Brazil. Disruptions in their production by pests and diseases or mother- nature such as insufficient rains, typhoons or frost could have a substantial impact on coffee prices. The flowering period is a critical time of year for coffee plants. Brazil's flowering period starts in October.
Vietnam is the world's top producer and exporter of Robusta coffee, which is used to make instant coffee. Vietnam harvest period starts from October and finishes in January. Harvest or exports during this period could be disrupted, if the rainy season (mid-April to mid-October) does not end in time or the Pacific typhoon peak season (July through November) becomes active.
The other seasonal influence is during the Northern Hemisphere's winter. This is when coffee consumption tends to rise.
Volatility could increase substantially during this period if mother-nature affects Brazil's flowering period, or Vietnam's harvest or exports. Therefore, prices could spike higher as a result of supply concerns. The frost season in Brazil occurs during the May through early-August period. In anticipation of this frost, prices tend to rise from November into May.
Sugar, The sweetness of cakes and cookies during Thanksgiving, Christmas, Jewish and other holidays is almost unbearable during this time of year-end.
Prices tend to peak in December because of a combination of supply and demand. Production at this time is not complete, as the European crop is not yet on the market. Brazil, the largest producer of sugar, growing season lasts seven months, leaving a production gap between December and April. Demand in the Northern Hemisphere, however is usually at its peak in the fall.
During this period, volatility could increase substantially if frost occurs or harvest is delayed by Mother Nature and as a result prices could spike higher.
Copper, one of the oldest commodities known to man, is a product with fortunes which directly reflect the state of the world economy. It is the world's third most widely used metal, after iron and aluminum, and is primarily used in highly cyclical industries such as construction and industrial machinery manufacturing. Profitable extraction of the metal depends on cost-efficient high-volume mining techniques, and supply is sensitive to the political situation particularly in those countries where copper mining is a government-controlled enterprise.
Copper was first worked about 7,000 years ago. Its softness, color, and presence in nature enabled it to be easily mined and fashioned into primitive utensils, tools, and weapons. Five thousand years ago, man learned to alloy copper with tin, producing bronze and giving rise to a new age. Thus copper was established as a commodity with commercial value.
Aluminum is a symbol of the 21st century economy. The lightweight, corrosion resistant metal is ubiquitous, finding use in aerospace applications, as a construction material, in packaging, automobiles, railroad cars, and thousands of other applications.
Transportation is the largest single consuming sector, absorbing approximately 30% of U.S. production. Packaging and aluminum containers such as cans take another 20%; building and construction absorbs 10%. The high voltage electric transmission lines that are strung from one end of the nation to the other are often made of aluminum.