History shows that commodity investing in the short-run has produced either dramatic gains or losses, and over the long run, poor or sub-optimal returns.
Commodities are traded globally, so what happens in one part of the world has implications for everyone. Many inefficient commodity producers have gone out of business in the last down cycles such as 2008-09 and thereafter in 2014-15.
History shows that commodity investing in the short-run has produced either dramatic gains or losses, and over the long run, barring some exceptions, poor or sub-optimal returns.
Moneycontrol's Sakshi Batra does a 3 point analysis to understand how to avoid pitfalls while investing in commodity stocks.