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Old 04-05-2007, 01:14 PM
iversonian iversonian is offline
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Join Date: Sep 2003
Posts: 367
Default Re: trading/investing in commodities - why do/have people prefer equit

Commodities don't earn dividends, i.e., when you're holding it, it's just sitting there not doing anything. Also, note that when you trade commodities futures, there's someone on the other side of the trade who's getting the exact opposite results you are. Basically, the only people who ought to be in the business of trading commodities are 1. those who produce and consume these commodities, and 2. those who are even better at trading commodities than those players in group 1.
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