Investing in commodities? Stick to gold, silver

Retail investors are turning to the commodities market as an investment option. Rising commodity prices have resulted in these giving better returns than equity markets.

However, precious metals such as gold and silver are the only bets in this space for retail investors.

Both the metals have had an unprecedented run, marking several new all-time highs over the past months. While one-year returns from gold stand at 19.52 per cent (as on June 1, 2011), silver returned 91 per cent.

Moreover, returns from agricultural commodities like tur dal,wheat and base metals like copper, zinc, aluminum, lead, nickel and tin have recorded higher returns than the equity markets.

While the Multi-Commodity Exchange's (MCX) agri index is at 26 per cent and at 25 per cent for copper, returns from Nifty are at 11.67 per cent annually.

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