Commodities have been one of the few bright spots that are ensured a good future over the next decade or two. While there has been a resurgence in equities, there can be no doubt it's short lived, as there's nothing but dubious reasons why they are going up, and a correction is all but a surety in the short term.

While nothing will ever go straight up as far as an investment goes, there should be significant upward movement in almost every commodity category and sector for years; some will of course far outperform others, and so you would want to put different weights on various commodities in order to reflect that reality.

In other words, you might put 15 percent of your commodity investment in sugar and copper, maybe 12 percent in silver, etc. These aren't recommendations, just an example to show you what I'm talking about. 

When you invest in commodities you look primarily as supply and demand and the market forces involved, so you should at least have a decent understanding of that, and so invest in ways that reflect not only demand, but if that demand can be met. If the demand can't be met for a certain commodity, then you could have a great opportunity for commodity prices to go up.

If demand for wheat, for example, is easily able to be met, like in 2009, then prices will fall, and you can also make money that way by shorting the market.
 

There are several types of commodity funds you can invest through if that's your choice of investment vehicle. The most available are commodity index funds, which measure a basket of commodities and give you a fairly accurate performance of commodities within the market.

Some of these will exclude certain commodities which other commodity indexes will include, so depending on your research and knowledge, you will want to go with the commodity index which best reflects where the commodity prices are going in relationship to those you're interested in.

Other types of funds to invest in commodities with are commodity mutual funds and commodity ETFs (exchange traded funds). Properly there really aren't many commodity mutual funds per se, and so an ETF would be more than likely to meet your needs if you had to choose between the two.

So a commodity fund can be a great way to invest in commodities 

Commodity futures are a way you can enter into commodity investing by investing directly into the commodity itself, with no concerns other than the performance of the commodity in relationship to supply and demand. This is a way many investors prefer to do business, as it's simple and the specific commodity only has to be watched, and not management teams and all sorts of other problems connected to a business.

This is why commodity futures are so desirable and powerful in building wealth. We just have to watch supply and demand and not anything else with this. It's also the reason investing in a commodity index is so powerful, as you're investing in a basket of commodities reflected by the one running it. This allows you to only be concerned with their investment philosophy and research lining up with yours, and not whether a gold, copper or silver mine somewhere may be closed or shut down from labor problems or not enough electricity available to keep them open at the time. 

Agricultural commodities should be a great way to build wealth going forward, as stores of food are at their lowest levels in literally decades.

Demand for sugar and other foodstuffs is rising, and emerging middle classes in China and India guarantee there will be much more money available for food in the future, and demand for quality food will continue to rise with those huge middle classes. 

Many prices for precious metals will go up, with copper and silver probably being two of the top ones in that sector, as demand for both won't slow down for a long time. And even if it takes a couple of years for the housing market to turn around, copper demand will return, and silver demand has only had a temporary setback based on the weakness of the economy alone.

Other metals are poised for rebounds and growth as well, and should do well over the long term.

Based on the growing size of China's economy alone guarantees this, even if they suffer some temporary setbacks, which inevitably happens to every country. 

Oil is another commodity that should continue to rise in the long term, even with the silly mainstream media touting all the alleged alternative energy answers. The truth is they'll never replace oil, and until and unless oil truly runs out, it'll be the main energy used in the global markets, even if the media ignorantly asserts otherwise.

Again, the ebb and flow of the weakness and strength of global economies ensure there will be times of ups and downs, but even so, oil overall should continue to rise. 

Currencies are another important commodity category, although investing in foreign currencies is a little trickier, and a lot of that relates to the weakness or strength of the currency, and you have to watch various countries and their policies toward printing money.

The U.S. dollar is sure to continue weakening as the outrageous amount of bailout funds are sure to generate strong inflationary pressures with that type of money just printed up and thrown into the market place.

But that includes the currency of any country, and so whether it's the Swiss franc, the British pound, the Chinese yuan or the Euro, you watch how the printing presses are running and the inflationary pressures to determine a lot of where the strength of a particular currency is going, including the greenback.

So there you have a brief report on the way commodities and commodity prices will trend and are trending, and the tremendous opportunities available to build wealth in the sector.

It doesn't matter if prices are falling or rising with commodities, you can make money with them, so in any market there are opportunities, and those following and brushing up and keeping up with certain commodities will do well for a long time to come in commodity futures and commodity options. 

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