2. It is an interesting correlation to note where History has proved that commodities are negatively corelated with equities. Thus one can hedge the portfolio in a better way by investing in the commodity market.
3. One can start in commodity market by following the guidelines as listed below:
(a) One should undertake transaction through a reputed broker who can provide investors with all resources and information which can help them make money from commodity market.
(b) It is better if one can have assess to both offline and online trading facility which will allow for physical deliveries.
(c) It is always advisable to trade with a commodity broker who is registered and is having pan India presence.
(d) Do undertake the correct documentation while opening account for commodity trading and get all documents verified.
(e) The last step before one commence commodity trading is that one should get the UCC (Uniform commercial code) and start off in commodity market by depositing the initial margin.
3. As a thumb rule one should park 15-20 percent of the capital in precious metals as it will help them being guarded against inflation and negative real interest rates.