Makati City, Swaziland (PressExposure) March 30, 2012 -- Knightsbridge Advisors will offer commodities to individual and corporate investors alike. The commodities that will be included in the initial offering are precious metals to include gold and Silver. The move aims to diversify the current investment portfolio that Knightsbridge is currently offering to its clientele. It will also give investors more options on where to park their money.
"Offering commodities will reinforce the Company's principles in prudent, long-term profitable investment strategies that will help weather the market's ups and downs and empowering the clients and to become their long-term, trusted partner through strategic financial planning." said Darren Brandman, Senior Investment Analyst of Knightsbridge Advisors.
Advantages in Investing in Commodities
In recent years the price of commodities continues to outperform the price of both the stocks and bonds. This was due to the high demand for commodities from emerging markets like China and India. The price of commodities will continue to increase in the future taking into consideration the rapid development happening in Asia coupled with limited supply in some commodities.
Investments in commodities like gold and silver will give institutions and individual investors alike higher return with less risk involved over time. The price of commodities bears a low or negative correlation to financial assets like stocks and bonds. When price of stocks goes down, the price of commodities move the other way. Commodity prices also behave positively during catastrophes and other crises.
Unlike stocks, the price of commodities tends to go up with inflation. During this time the price of commodities needed to produce goods increased thus compelling producers
to supply more commodities in the market. In the case of gold, when the economy is down consumers and institutions tend to hoard considering gold as a "safe-haven" in times of financial crisis. In the last five years, the price of gold continues to exhibit an upward movement.
Analysts predicted that the price of gold will continue to move upward to reach an average of $2,200 an ounce this year. The increase is due to high demand as more investors tend to park their money in "safe havens" instruments. Silver, which is also considered as a "safe haven" investment is seen to reach $50 an ounce in 2012.