Euro Commodity ETF's.

Dman35

Registered User
Messages
49
Hey Folks,

I'm currently looking at investing in ETF's and I'm aware of the site's policy of not discussing individual shares, funds etc, so I won't mention any fund in particular.

The ETF's I've seen that have interested me are on the London Stock Exchange but are in US Dollars so feel I'm taking on a currency risk as well because i'll be purchasing them using Euro's.

Could anyone please point me in the direction of an supplier of Euro Commodity ETF's (Oil, Gold, Silver, Arg etc).

I've found a few who have ETF's in Euro but none who have a good range of Commodity ETF's in Euro.

Any help would be much appericated.

Cheers
 
When buying a pure commodity product the quoted currency is less relevant. Even if the dollar were to tank completely, the underlying commodities are hard assets and therefore would be reflected in the nominal amount of the product, i.e. a huge increase in price. I would focus more on the credibility of the provider, fees and purchasing costs when it comes to commodity investments.
 
My understanding is there is not always enough real product to cover the ETFs.

For example, if everyone who owned silver ETFs tried to get their hands on the real silver covered by the ETF, there would be a lot of disappointed investors.

Maybe this isn't a big deal but I would research it just in case.
 
It is certainly true that precious metals in an ETF are leased out.

If this wasn't the case there would be no short side of the market.

So if you were buying precious metals as financial insurance (and there are no other prudent investment reasons) then it would seem imprudent to be exposed to counterparty risk. Generally using an ETF to speculate in commodities is a bad idea
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As noted by another poster the currency issue is a red herring. [broken link removed]

If you give me euros to buy gold or oil I will change them into dollars to make the purchase.
 
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