YouTube video (Alberto Costa, uploaded Nov 21, 2021) that recommends two ETF-based investments to gain exposure to recent commodity-price increases. The presenter highlights the commodity ETF DBC (noting a rise from about $13 in Nov 2020 to nearly $21 at the time of speaking) and the gold ETF IAU (described as physically backed and currently in a consolidation phase after a 2019–mid-2020 rise). The video’s purpose is practical: suggest ETFs (DBC and IAU) as accessible ways to profit from higher commodity and gold prices and to diversify holdings beyond bank cash or concentrated stock positions.
Questions this video answers
Alberto Costa
November 21, 2021
DBC (commodity ETF) and IAU (gold ETF)
Around $13 in November 2020 to almost $21 at the time of speaking (present large increase).
IAU is physically backed (tracks physical gold rather than using derivatives).
Chapters
Hi, I don't know where you live, but probably you have realized that prices of electricity and other commodities have been increasing recently. And I don't want to discuss in this video the reasons why that happened. You can find information online, you just Google it and then you will find articles explaining what is going on. But today I want to focus on how can we profit from that. And if you follow this channel, you know that I really like to invest in ETFs that basically allow you to get an exposure to different things and one of them is commodities. So today I want to discuss this index, actually this ETF that is called dbc. Okay? And as you can see here, this is the etfdb.com website that you can use for finding information on ETFs. I will put the link in the description. So this one is an ETF that is tracking an index on commodities. And basically by investing in this one, you can profit from this increase of prices. So what are commodities? They can include oil, natural gas, so they are linked to electricity as well. And then you can find real information. Just look here. What I want to show you is the chart so you will get an idea about the increase. And here you can see around here we are November last year, so November 2020. And the price you can see on the right was around $13, 13 something. And now is almost 21. So it's a huge increase, huge increase of price. And you can see there is a clear trend going up. So you can invest in this index and actually in this index, I mean in this etf. And actually this ETF specifically the DBC is also part of one of my portfolios and it's doing pretty well. I'm investing also in something else in that portfolio that I mentioned. And that is the second thing I want to share with you today. That is gold. Okay? So maybe you have also seen this news around saying that, hey, you know, there is some kind of crisis coming up, you should not keep your money in the bank. That I think regardless is a very good suggestion. You should invest your money and not let everything in the bank. And some people I heard were even suggesting to buy physical gold. That may prove to be quite challenging if you know, you want to buy gold. The question is, where should I buy that? And then even more important, where should I store the gold? You know, because you can of course take it and put it in your house somewhere, but it may not be the best way. So another way to again get exposure to gold is through ETFs and there is this one I want to share with you iau. So same website, etfdb.com I will put again the link in the description. This is an ETF tracking the price of gold. And what is very important here is to look at this part where they say that is physically backed because there are some ETF tracking gold with some derivatives, okay. But to be safer is better to find ETF that are physically tracking the price of gold. And this is one of them. So if you look at the chart, you will see that the price of gold is in consolidation phase. I would say if you go, if you go to like here is 2019, you can see that there was a big increase till mid 2020 and then the consolidation phase started. But still I think it's very good to hold some of it because again you may not have exposure to physical gold is very hard. And this is an alternative way to get access to this investment opportunity. So to summarize is a very short video, but I just wanted to share with you these two opportunities. Number one, I repeat is the DBC tracking commodities. Why? Because prices of everything has been increasing in the past months and actually you can see here, so I think it may be good to put some money here. And the other one, because you know that if, I mean I never trust analysts and what they say, what they claim they predict. However, it's always good to diversify my opinion in some other type of investment. And if you have money in the bank that you don't know what to do or, or you have all your money invested maybe only in some kind of stocks, maybe technology stock or other things, it could be a good idea also to put something in gold. And this ETF is a good way to get access to gold without having to own the physical metal. Right? So this is the suggestion I have for this video. Let me know what you think about that. And also if you know there are other ETF that you are using to track gold and commodities, you can also let me know because these two I mentioned are those I'm using because I think they have a good profile, they have a good volume and other criteria that I use for choosing them, but they are not the only ones. So if you are investing in gold or commodities with other ETFs or other instruments, you can let me know and maybe we can have a discussion in the comments with that. I thank you for watching and see you next time.
