Investing in commodities 

Investing in commodities via CFDs at iForex Europe offers opportunities to invest in natural resources, such as precious metals, energy resources and agricultural products. With us, you will find many opportunities to diversify your investment portfolio and pursue your investment goals. Take advantage of competitive spreads and minimize your transaction costs. Contact us today and discover the benefits of investing in commodities with iForex Europe. 


How does investing in commodities work?

Investing in commodities means investing in natural resources, such as gold, silver and oil. This can be done in several ways, including: 

1. Trading in the commodities market: direct trading in physical commodities. 

2. Investing in companies: investing in companies active in the production or trading of commodities. 

3. Trading via CFDs: at iForex EU, we offer CFDs as a popular way to take advantage of price fluctuations without actually owning the commodities. 

CFDs allow investors to speculate on commodity price movements by entering into a contract. This offers the opportunity to take advantage of both rising and falling prices. Leverage allows you to take large positions with a relatively small capital; however, this also increases potential losses. It is therefore important to understand the risks well and apply appropriate risk management strategies. 

What commodities can you invest in?

At iForex EU we offer a huge variety of commodities in which to invest. Whether you are interested in precious metals, energy or agricultural products, we have several options available to diversify your investment portfolio and pursue your investment goals. 

Why invest in energy? 

Investing in energy provides opportunities to invest in various energy sources, including oil, natural gas and gasoline. These commodities play a major role in the global economy, so their prices can also be affected by external factors such as geopolitical events, supply and demand relationships and technological developments. 

Why invest in agricultural products? 

When investing in agricultural products, consider various agricultural commodities such as grain, coffee, sugar, cocoa and corn. The prices of these commodities can actually be influenced by weather, crop yields and trade policies. Demand from the consumer market also plays a major role in the prices of these commodities. Investing in agricultural products allows you to take advantage of the dynamic market of food and agricultural commodities. 

View the comprehensive list of our commodities in which you can invest, along with their trading conditions, here. 

How do I start investing in commodities?

At iForex Europe, we offer CFDs as an accessible way to profit from price movements, without having to buy or store the commodities themselves. CFDs allow you to speculate on both rising and falling prices, and thanks to leverage, you can take larger positions with just a small amount of money.

Availability of commodities 

Commodities are not infinitely available and are widely used in society. Limited availability can lead to price fluctuations, which can create potential profit opportunities, but can also result in potential losses, especially for investors working with CFDs. Moreover, commodities are widely used in various sectors of the economy, including agriculture, industry and technology. 

Volatility is an important factor when investing in commodities. Prices can change rapidly due to external factors such as geopolitical tensions, weather conditions or economic trends. Therefore, it is wise to consider commodity investments carefully and make sure you have the right information. 

  

What are the top 3 commodities to invest in? 

At iForex EU, there are three popular categories of commodities that many investors are interested in: 

1. Gold 

Investing in gold is oftten seen as a stable and solid  investment during economic uncertainty or market fluctuations. 

2. Oil 

Oil is an essential source of energy used worldwide for transportation, industry and energy production. The price of oil is heavily influenced by geopolitical events, making investing in oil both a risk and an opportunity for investors. 
 
3. Silver 

Silver has both properties as a precious metal and industrial applications (e.g., electronics). This makes silver a versatile choice for investors who want to benefit from both economic growth and scarcity. 

Frequently Asked Questions 

Is silver a good investment?  

Silver is an attractive investment because of its versatility: 

- Protection against inflation: like gold, silver can serve as a stable & solid investment 

  during economic uncertainty. 

- Industrial demand: silver is widely used in technological applications such as solar panels and
electronics. 

- Affordability: compared to gold, silver is often more accessible to smaller investors. 

- Volatility: silver's price movements present opportunities for active traders looking to take
advantage of price fluctuations. 

 

What is the most powerful commodity?

The most powerful commodity depends on perspective: 

- Economic importance: oil plays a crucial role in energy production and transportation. 

- Safe haven: gold remains valuable during financial crises. 

- Future growth: lithium becomes increasingly important due to its use in batteries for electric
vehicles. 

 

Advantages of investing through iForex Europe 

- Trading via CFDs without physical storage of commodities. 

- Leverage that allows you to take larger positions with less capital. 

- A wide range of tradable products. 

- Trade professionally and safe. 

Disadvantages of investing in commodities 

While investing through CFDs offers flexibility, it also brings risks: 

- Market volatility can lead to rapid price changes. 

- Leverage increases potential losses; 80.22% of retail investors suffer losses when trading via CFDs
at iForex EU. 

- It is crucial to fully understand risk before you start trading. 

With iForex Europe you have access to a world of financial opportunities! Invest in commodities through our platform today and discover how we can help you achieve your investment goals! 

It is important to emphasize that CFDs are complex instruments that carry high risk due to leverage. According to iFOREX, 80.22% of retail investors suffer losses on CFD trading with this provider. It is crucial that investors thoroughly understand how CFDs work and consider whether they can afford the high risk of loss.