What is necessary to know about buying or selling commodities?


The world market offers many opportunities to make money from the exchange rate to the buy/sale of shares of companies, that specialize in the sale of commodities.  Trade-24 analysts have decided to give a small overview on how to make a product of this type. For example, we decided to take the price movement of oil and metals on the example of two successful companies on the data of 2016 – Brazilian oilgiant Petróleo Brasileiro SA (Petrobras) and the Kazakh company KAZ Minerals PLC.

How to buy and sell shares in oil companies?

Brazilian monopoly and a company in the Latin American region continues to remain at the leading positions. After a loud corruption scandal in the last year concerning two former Presidents Lula da Silva and Dilma Rousseff, the company was able to show positive dynamics of growth in the value of its shares. It is also important to note, that Petrobras continues to increase its capacity, and therefore, the likelihood of rising prices is quite probable.


Like many other sectors, the oil industry is working on clearly established pattern. First, the company sells its raw materials purchased on futures on a clearly specified period of purchase or sale, then – expect ive evaluations of authoritative institutions and agencies on the issue of reserves, the scope of development and the price of the basket. The last stage is the realization of raw materials purchased on the background of the traders’ abilities . Then it should need to say one fact, that can affect this scheme – due to the volatility in the oil products market, it is sufficient reliability futures and their guarantees are quite different impact on the market.

As for Petróleo Brasileiro SA company, that this scheme is also a fact acquires its property by the state. Guaranteed by the country’s leadership, the strong development of the banking system and increase the demand for Brazilian “black gold” unreliable helped us to reach a new qualitatively level. However, it should be mentioned,  that oil, unlike other commodities, subjected to price decline due to a number of reasons. Therefore, its trade less stable than the sale of metals, of which more it will be discussed.

The phenomenon of KAZ Minerals PLC: what is the aim of success?

Kazakh mining and mineral beneficiation Corporation KAZ Minerals PLC became a sensation among traders and investors. Successfully sold shares, higher level of responsibility, excellent business reputation, the development of new fields – all this has become an indicator of success on the London and Hong Kong stock exchanges trading. Also worth noting the company continues to increase its capacity in Kazakhstan through diversification of new deposits of copper and associated metals – nickel, gold, molybdenum and aluminum.

kazminerals-lsm-1According to data as the level of production forecast for raw materials sold, the prospects of development of the field, increasing the value of the product itself and the positive financial condition of the company are sufficient arguments to trade. Based on these assessments, four quarterly reports and annual report for 2016 KAZ Minerals PLC  indicated a trend towards a positive increase of liquidity.

Our traders note, that in 2016 KAZ Minerals PLC company continued to grow its production capacity by the shortened procedure. All works  are fully going on the Boschekul field, where the total amount of deposits is estimated at 1.5 billion tons. In the end of this year  it will be put into action the Aktogay mine, which has deposits of oxide and sulphide ore at tens of millions of tons, which is also having the associated metals as molybdenum, copper, sulfur, lead and zinc. At the same time, all the ore are easy washability, which  involves the release of high-quality metal for many businesses.

Summuing up, Trade-24 team offers to our customers to start trading on the shares of Kazakh company KAZ Minerals PLC. Also we advise you to go to our website and open an account! If you want to get advice on financial matters – our analysts are ready to help you answer all your questions.


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