Red-Hot Resources

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Thursday, September 28, 2006

Here's the Scoop on 29 Commodity Funds Recently Listed in London

In recent issues, I've alluded to 29 new exchange traded commodity funds (ETCs) that were listed this week on the London Stock Exchange. If you're interested, you can CLICK HERE for a complete list.

Is this bullish for commodities? I'd say so. While it is true the funds only track the prices of the underlying commodities (rather than buy and physically hold the commodity, like the US gold and silver ETFs), this is more investor dollars pouring into the sector, and that can't help but drive up volatility. That can hurt you on the downside, to be sure, but it can help you on the upside.
Check out my new gold and energy blog at MoneyAndMarkets.com