Futures For You by Carley Garner
COMMODITIES: CAN PRICES GO TO ZERO?
Could a commodity bull with deep enough pockets weather any storm?
The simple answer to that question is an unequivocal yes. If you had unlimited trading capital, an unlimited time horizon, and the sense to mitigate futures market leverage, you could theoretically never lose when trading commodities. This theory is based on the fact that commodity prices, although they can get very cheap, cannot go to zero. In other words, commodities are “goods,” not “bads”; unless something changes dramatically in the way we live, we will always need corn, soybeans, crude oil, natural gas, and so, to some degree...