Hot Commodities

February 1, 2005
The founder of the Rogers International Commodities Index (RICI) has written a book to remind the world that there are investment opportunities beyond stocks and bonds. All too often, commodities are referred to as either a cautionary tale of people losing their shirt or else as a joke (pork bellies, anyone?). They are indeed big business, however, with a larger volume of sales than the stock exchanges, but they still remain relatively unknown. This book seeks to remedy that by providing necessary information to get investors started, which ranges from what commodities are to margin requirements and futures contracts. Needless to say, the RICI is touted as a smart way to invest, but there is plenty of advice for those who want to go it alone. There is also a section on China as the world's largest market, as well as chapters covering individual commodities including gold, oil, and sugar. Overall, a readable book that seeks to demystify an often overlooked investing option. Purchase where there is interest.-Susan Hurst, Miami Univ. of Ohio Libs., Oxford

Copyright 2005 Library Journal, LLC Used with permission.

January 1, 2005
Commodity investing has gotten a bad rap. Everyone seems to have heard of someone who "lost his shirt" trading commodity futures. What are commodities? Commodities are "things," the essential raw materials that go into making everything from bread to automobiles. This includes foodstuffs such as sugar, wheat, soybeans, and coffee; the fossil fuels crude oil and natural gas; and industrial materials such as lumber, copper, lead, gold, and silver. As a group, they typically do well when stocks are doing poorly, and vice versa. But unlike stocks, the price of commodities can never go to zero. Rogers, known for his world travels, his ability to size up any market, and his contrary approach to investing, says we are in the beginning of a multiyear bull market in commodities. Although he " is" promoting his new commodities fund, he makes a very good case that commodities belong in any balanced portfolio, particularly now. Rogers walks us through the sometimes obscure language of commodity trading, and shows us how to get involved without "losing our shirts."(Reprinted with permission of Booklist, copyright 2005, American Library Association.)