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Investing in commodities: Popular beliefs and misconceptions

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  • George Skiadopoulos

    (University of Piraeus)

Abstract

Over the last decade institutional and individual investors have increased their allocated share of wealth to commodities immensely. In this short article, we discuss some common beliefs and point out the misconceptions on the motivation for investing in commodities, whether commodities should be included in investors’ portfolios and how investors should measure the performance of commodity funds. The expressed ideas can enhance investors’ interest in this fascinating asset class.

Suggested Citation

  • George Skiadopoulos, 2012. "Investing in commodities: Popular beliefs and misconceptions," Journal of Asset Management, Palgrave Macmillan, vol. 13(2), pages 77-83, April.
    • Handle: RePEc:pal:assmgt:v:13:y:2012:i:2:d:10.1057_jam.2011.35
    DOI: 10.1057/jam.2011.35
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    References listed on IDEAS

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    6. Daskalaki, Charoula & Skiadopoulos, George, 2011. "Should investors include commodities in their portfolios after all? New evidence," Journal of Banking & Finance, Elsevier, vol. 35(10), pages 2606-2626, October.
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    Cited by:

    1. Jonathan A. Batten & Cetin Ciner & Brian M. Lucey, 2015. "Which precious metals spill over on which, when and why? Some evidence," Applied Economics Letters, Taylor & Francis Journals, vol. 22(6), pages 466-473, April.
    2. Vinícius Da Silva Braga & Mathias Schneid Tessmann & Marcelo de Oliveira Passos & Glauco Fonteles de Oliveira e Silva & Marco Antônio Kerbeg, 2024. "Analyzing the Performance of Diversified Commodity Derivatives Portfolios in Brazil," Applied Economics and Finance, Redfame publishing, vol. 11(1), pages 21-31, December.
    3. Lahiani, Amine & Mefteh-Wali, Salma & Vasbieva, Dinara G., 2021. "The safe-haven property of precious metal commodities in the COVID-19 era," Resources Policy, Elsevier, vol. 74(C).
    4. Rad, Hossein & Low, Rand Kwong Yew & Miffre, Joëlle & Faff, Robert, 2022. "The strategic allocation to style-integrated portfolios of commodity futures," Journal of Commodity Markets, Elsevier, vol. 28(C).
    5. Yıldırım, Durmuş Çağrı & Cevik, Emrah Ismail & Esen, Ömer, 2020. "Time-varying volatility spillovers between oil prices and precious metal prices," Resources Policy, Elsevier, vol. 68(C).
    6. Awaworyi-Churchill, Sefa & Inekwe, John & Ivanovski, Kris & Smyth, Russell, 2022. "Breaks, trends and correlations in commodity prices in the very long-run," Energy Economics, Elsevier, vol. 108(C).
    7. Mensi, Walid & Al-Yahyaee, Khamis Hamed & Hoon Kang, Sang, 2017. "Time-varying volatility spillovers between stock and precious metal markets with portfolio implications," Resources Policy, Elsevier, vol. 53(C), pages 88-102.
    8. Mensi, Walid & Vo, Xuan Vinh & Kang, Sang Hoon, 2021. "Time and frequency connectedness and network across the precious metal and stock markets: Evidence from top precious metal importers and exporters," Resources Policy, Elsevier, vol. 72(C).
    9. Kang, Sang Hoon & McIver, Ron & Yoon, Seong-Min, 2017. "Dynamic spillover effects among crude oil, precious metal, and agricultural commodity futures markets," Energy Economics, Elsevier, vol. 62(C), pages 19-32.

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