I'm interested in diversifying out of some of my precious metal miners into some agriculture Etf's or commodity funds. I've accumulated a few shares of RJA (Jim Roger's Agriculture commodity fund) but wanted to get a sampling of what you grain experts like out there for someone that doesn't play in the options/futures game. I've also accumulated some Mosaic (MOS) shares but, not sure if it has the best potential compared to some of the less or more popular fertilizer companies. Thank you for sharing!
I like JJG, grains. It seems to be hugging that 200 day pretty tight....but I'm gonna wait for QE to end...and see if we get deflation which may whack those commodity prices down .....or may not.....before buying more.
There are three ETFs which I'd like to acquire and hold for the long term but like robreke I'm waiting to see if we get a drop in price after QE2.
The ETFs I've been looking at are the new Golbal X Food ETFs:
SOIL - Fertilizers/Potash: https://etfdb.com/etf/SOIL/
BARN - Global X Farming: https://etfdb.com/etf/BARN/
EATX - Global X Food ETF: https://etfdb.com/etf/EATX/
I have seen the math done on SLV and GLD and AGQ and TZA whereby people have demonstrated that these derivatives are bad investments for holding (vs. okay for trading) -- because they are always making a slice off you on the decay.
Does anyone know if this holds true for SOIL, BARN, etc.? Are there stocks that would be better for buying and holding, rather than funds?
I'm pretty green (zing!) to this realm still, but my mind goes to ConAgra or Cargill or General Mills (to capitalize on lack of supply?). I have researched fertilizers, but it seems like they'll struggle with a small crop, whereas those who sell it will profit.
I've bookmarked this thread -- I think agricultural investments are a great place to be right now. Thanks everyone!
Im interested in your questions too, I have been waiting to take a position in DAG as well as RJA but wanted to see if some deflation would bring the prices down some. Do all ETF's have decay? and when is a good time to get into some of these agriculture funds?
The volumes traded in these two etf's seem pretty poor, that has me worried some, I may sell my RJA and look more at the JJG and CAG suggestions, much healthier market volume. As an etf, JJG volume seems strong and a nice entry might be $48ish on a potential retest of the recent bottom when it finally broke through the 200dma. ConAgra, CAG, looks really interesting, thinking of jumping in if we see $25.50ish. I'm a newb though so don't follow me.