Ive recently read a lot about rising food and agricultural prices. Why might this be and is there a relatively simple way for a private investor such as myself to gain exposure to such a trend?
With wheat prices recently reaching record highs, agriculture has moved into investors thoughts of late. It appears that concerns in relation to possible global warming having been partly responsible. Not only are more erratic temperatures causing concerns for crop failures in different parts of the world both droughts and floods have played havoc with crop production – but a move towards using biofuels such as sugar cane and palm oils is also exerting pressure on land which once might have been used for more traditional crops such as wheat. Investors wishing to gain diversified exposure to such trends might like to consider funds, for example. An Exchange Traded Fund (ETF) in the form of the ETFS Agriculture DJ-AIGCI fund could be considered. The epic code is AIGA.A. The fund is designed to track the Dow Jones-AIG Agriculture sub index. Please note that this particular ETF is dealt in US dollars, providing UK based investors with an additional currency risk. Another possibility might
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