How to play commodities (and not get trampled) - The Globe and Mail

(c) 2010 F. Bruce Abel

Maybe it's just the clear air here in Cottage Country, but this Saturday Globe and Mail piece on the various ways to invest/trade commodities, I give high credence to.  Contango, for example is explained, and its effect on return within an ETF.  And since it's a Canadian newspaper I give high credence to mining discussion.  Here's a snip and the link for the full article.


How to play commodities (and not get trampled) - The Globe and Mail: "The creation of commodity-based exchange-traded funds made it a lot easier for the individual investor. But pitfalls exist there, as well, because of a futures-market phenomenon known as “contango,” when the price of a futures contract exceeds the spot price of a commodity."