GulfSea focuses on closing the divide between suppliers, refiners, and everyday consumers in some of the remote countries and communities across the world. Being completely independent offers various advantages in the multi-commodity sector. It allows us to gain access to a broader range of products blended specifically to meet our partners unique refinery configurations and demanded feedstock specifications, enhancing yielding and ultimate profitability.
GulfSea prides itself on the ability to deliver, our experience, knowledge and technology allows us to save you time, deliver opportunities and raise your income.
Commodities are produced or extracted products, often natural resources or agricultural goods, that are often used as inputs into other processes.
Investing some of your portfolio in commodities is recommended by many experts as it is seen as a diversifier asset class.
Moreover, some commodities tend to be a good hedge against inflation, such as precious metals and energy products.
Investors break down commodities into two categories: Hard and Soft. Hard commodities require mining or drilling, such as metals like gold, copper, and aluminium, and energy products like crude oil, natural gas, and unleaded gasoline. Soft commodities refer to things that are grown or ranched, such as corn, wheat, soybeans, and cattle.
Investing directly in a commodity requires acquiring it and storing it. Selling a commodity means finding a buyer and handling delivery logistics. This might be doable in the case of metal commodities and bars or coins, but bushels of corn or barrels of crude oil are more complicated.
Commodity futures contracts require the investor to buy or sell a certain amount of a given commodity at a specific time in the future at a given price. To trade futures, investors require a brokerage account or a stockbroker who offers futures trading.
Most individual investors choose ETFs with commodity exposure. Some commodity ETFs buy the physical commodities and then offer shares to investors that represent a certain amount of a particular good.
Investors can also buy shares of the companies that produce commodities. For example, companies that extract crude oil and natural gas or companies that grow crops and sell them to food producers. Investors in commodity stocks know that a company's value will not necessarily reflect the price of the commodity it produces. What is most important is how much of the commodity the company produces over time. The price of a stock can plummet if a company does not produce what the investors have anticipated.