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Investing in commodities using index funds

A funny thing happened in the early part of the first decade of the twenty-first century – investing in commodities suddenly became sexy.

Anyone who remembers the wonderful John Landis film Trading Places, starring Eddie Murphy and Dan Akroyd as the hapless victims of a giant bet placed by some Wall Street titans, will also remember their subsequent encounters with the peculiar but high-powered business of pork belly futures trading. Commodities, you could reasonably surmise from the film, was a slightly obscure, rather niche business that was best left to specialists. Gold has always had its admirers and oil has been gaining traction in investing circles, but most investors remain firmly wedded ...

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