Investing in Unfamiliar Commodities through ETFs
As the price of gold has been stuck in a narrow trading range for months and oil is failing to break above the $75 level, investors can turn to unfamiliar commodities that are not considered the usual suspects when looking at investing in the sector.
The iPath Dow Jones-UBS Sugar ETN (SSG) hit a new high today as the price of sugar futures hit the highest level in two decades. Investors can use the ETN as a vehicle to play the price of sugar within their portfolio. The ETF is up 64% year-to-date.
The PowerShares Base Metals ETF (DBB) invests in a trio of industrial metals (copper, aluminum, zinc). Copper and aluminum especially have seen a huge increase in demand from China over last year, helping push the metals to the best levels of the year. DBB is an inflation hedge, play on a global economic rebound, and beneficiary of a weaker US Dollar.
The iShares Silver ETF (SLV) invests 100% in silver futures, which have been following a similar pattern to gold, but is trading at a discount historically to its precious metals peer. I feel SLV is the better play versus gold at current prices. | 
