Test your knowledge ... investment, knowledge, buying, called, direct

dotamasta

Is buying commodity futures called direct investment in commodities or indirect investment in commodities ?
Have fun

bulosehi

Tricky one…I will side with direct.

SkipE99

^don’t talk like a politician (double hedging), which one??

d2rockstar

If I had to call it, I would say Direct.

jbaldyga

i’d say direct.

Viceroy

I am going to say indirect.
At t=now you do not directly own the commodity. You have a contract to purchase it.

jarobi04

I’ll go with direct, indirect would be something like investing in an oil & gas co/miner’s equity?
I read this like a week ago, it’s already a distant memory!

iteracom

So what is the answer ? I’ don’t have my books with me

hoangvu90

I recall the reading and I remember being confused.
…derivatives are considered direct investment in commodities.
I just now grasp the concept that buying a company that deals in the commodity is indirect vs. owning the commodity or a derivative on the commodity = direct.
it is like a light bulb just went off. silly los, I hope it is tested.

AndyNZ

What is actually buying the wheat? Really direct?