Guest guest Posted August 16, 2001 Report Share Posted August 16, 2001 Dharma wrote: He started yelling. "NOBODY gets the wheat! Nobody WANTS the wheat!"I asked him if it's like "musical chairs" - you keep passing this piece ofpaper around, and when the wheat is ready to ship, the person who has thepaper gets stuck with the wheat?"NOBODY gets the wheat! Nobody WANTS the wheat!" ~~~~~ Dear Dharma, You tell the funniest stories!! In a way, your professor was right tho. Without telling you more than you probably want to know, the commodities market IS a lot like investing in stocks. If you buy stock in Alcoa aluminum, they will not deliver to you an airplane, nor expect you to go door to door trying to sell one. In a way, you are right too, because 'someone' does eventually buy the wheat. In the market tho you are buying things like futures, or options to buy/sell at a certain price later. The investors in the market usually do not want the wheat itself, but to make money off the trading of it. Basically it's a form of betting on what the prices will be in the future. The actual buying and selling done by commodities brokers is way over my head to explain, but those who are just investors do NOT want the wheat itself. Imagine how incomprehensible the things you teach now might have seemed to your professor! Love you, Gloria Quote Link to comment Share on other sites More sharing options...
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