19 Best Commodities Trading Books [Updated 2021]
We have a list of commodities book which introduce the beginners to basics of this market, useful trading strategies, basics of commodity futures alongside detailed discussions on its future potential for growth and tools and techniques available for managing the element of risk. Below is the list of such commodities book –
- Commodities For Dummies ( Get this book )
- Hot Commodities: How Anyone Can Invest Profitably in the World’s Best Market ( Get this book )
- The Little Book of Commodity Investing ( Get this book )
- Higher Probability Commodity Trading ( Get this book )
- Commodity Options: Trading and Hedging Volatility in the World’s Most Lucrative Market ( Get this book )
- A Trader’s First Book on Commodities: An Introduction to the World’s Fastest-Growing Market ( Get this book )
- Trading Commodities and Financial Futures ( Get this book )
- Hedging Commodities: A practical guide to hedging strategies with futures and options ( Get this book )
- Understanding Oil Prices: A Guide to What Drives the Price of Oil in Today’s Markets ( Get this book )
- Buy Gold and Silver Safely: The Only Book You Need to Learn How to Buy or Sell Gold and Silver ( Get this book )
- A Trader’s First Book on Commodities ( Get this book )
- Guide To Investing in Gold & Silver ( Get this book )
- Stack Silver Get Gold ( Get this book )
- The New Case for Gold ( Get this book )
- Crude Volatility ( Get this book )
- Trade Stocks and Commodities with the Insiders: Secrets of the COT Report ( Get this book )
- Energy Trading & Investing ( Get this book )
- The Colder War ( Get this book )
- Commodity Options ( Get this book )
Let us discuss each of the Commodities books in detail along with its key takeaways and reviews.
#1 – Commodities For Dummies
by Amine Bouchentouf (Author)
This top commodities book is an excellent introductory work on trading and investing in commodities, which helps understand the kind of risks involved in the commodities market and how to deal with them efficiently. Often, average investors tend to ignore or avoid the commodities market either for lack of knowhow to identify and manage risks along with developing a successful strategy, but this work offers a roadmap to these investors to succeed in this enigmatic financial market. Readers would also be able to learn ways to diversify their portfolio in commodities and how exactly this market differs from the others. The work also offers an insight into investing in energy and metals, two of the most sought-after classes of commodities, along with helping acquire the basics of commodity futures. A complete step-by-step approach for beginners to understand the breadth and scope of the market and start investing and trading in this market with greater confidence.
An excellent introduction to commodities as a little-understood market which can help investors diversify their portfolio with relative ease. Readers would acquire an understanding of the risks associated with trading and investing in commodities along with updated information on SEC guidelines. This work offers useful insights on trading in energy and metals and the basics of trading in commodity futures as well. A perfect beginner’s guide to investing and commodity trading.<< Get this book >>
#2 – Hot Commodities:
How Anyone Can Invest Profitably in the World’s Best Market
by Jim Rogers (Author)
This best book on commodities is an excellent work on the commodities market, usually ignored by investors for the lack of proper understanding of what is needed to succeed here. The author, an expert on commodities himself and having successfully managed nothing less than his own commodities index fundIndex FundIndex Funds is a form of mutual fund constructed to replicate and match the performance of a particular country's index like S&P, NASDAQ, etc., and helps investors take broad market exposure due to the amount invested in various stocks of the different sectors of the economy., offers practical advice to investors who have so far not thought of commodities as a long-term investment option. This work would help create a fundamental understanding of commodities and how this market works, starting with the basic laws of supply and demand, which directly impact the prices of commodities along with laying stress on the study of cyclical and historical trading patterns which reveal a great deal about their long-term market behavior. A perfect companion to those willing to take advantage of investment opportunities presented by this unique market while carefully weighing and managing the risks involved with the help of well-defined trading and investing strategies.
Takeaways from this Top Commodities Book
An ideal introduction to this market that adopts an uncomplicated approach to explaining the basics of commodities and how one can trade in them profitably in the long run. The author busts several myths along the way, including the common belief that commodities are unreliable by very nature or that this market is not suited for long-term investment. A great read for anyone interested in acquiring a workable understanding of the commodity marketCommodity MarketThe commodity market is a place where people buy and sell positions in commodities such as oil, gold, copper, silver, barley, wheat, and so on. Started with agricultural commodities, there are now fifty main commodity markets throughout the world, dealing with over a hundred commodities. and get started without much ado.<< Get this book >>
#3 – The Little Book of Commodity Investing
by John Stephenson (Author), John Mauldin (Foreword)
This best book on commodities is a complete yet concise guide to investing and commodity trading as a viable alternative to preferred choices of stocks, bonds, and real estate as one of the fastest-growing markets. The author argues how commodities shape financial marketsFinancial MarketsThe term "financial market" refers to the marketplace where activities such as the creation and trading of various financial assets such as bonds, stocks, commodities, currencies, and derivatives take place. It provides a platform for sellers and buyers to interact and trade at a price determined by market forces. and how, in large developing economies, metals, energy, and agri-commodities acquire a whole new significance, which needs to be understood carefully. This work not only explains the basic concepts related to commonly traded commodities but also builds on some of the fundamental ideas while discussing the unexplored potential of this massive market. On top of it all, this serves as a pinpointed guide to help understand why commodities are the next big thing and how to invest in them the right way.
A quick introduction to commodities which takes readers straight to the heart of the matter, explaining the fundamentals and the significance of commodities as a market in the modern financial industry. The author makes it amply clear how it is relatively easier to understand commodities as compared to stocks and bonds, but the rewards could well outdo what any of the conventional investment choices might offer. A no-frills approach to investing and trading in commodities and how it can help one become a good investor in the long run.<< Get this book >>
#4 – Higher Probability Commodity Trading:
A Comprehensive Guide to Commodity Market Analysis, Strategy Development, and Risk Management Techniques Aimed at Favorably Shifting the Odds of Success
by Carley Garner (Author)
Commodity trading has become as sophisticated as any of the other markets, and this elegant work explains some of the advanced strategy and investment approaches to commodities. Usually, investors think that options and futures have greater relevance while dealing with equity and debt instrumentsDebt InstrumentsDebt instruments provide finance for the company's growth, investments, and future planning and agree to repay the same within the stipulated time. Long-term instruments include debentures, bonds, GDRs from foreign investors. Short-term instruments include working capital loans, short-term loans., but this author discusses practical tools and techniques for efficiently trading in commodity options and futures. What sets apart this work is the rare synergistic approach of bringing together fundamental, technical, seasonal, and sentiment analysis in an attempt to anticipate market price changes with greater accuracy. A path-breaking work on advanced mathematical techniques for trading in commodities.
A novel exposition on commodity trading which discusses how to utilize a combination of several analytical techniques to minimize the risk associated with commodities. The author goes the extra mile to elucidate the principles of commodity futures and options and how one can develop an understanding of advanced techniques for commodity trading.<< Get this book >>
#5 – Commodity Options:
Trading and Hedging Volatility in the World’s Most Lucrative Market
by Carley Garner (Author), Paul Brittain (Author)
This book on commodities work demystifies commodity options trading for average investors with a view to help them manage risk better. Despite a high level of market volatility, traders can learn how to set it off to an extent with precise options strategies devised to change the odds in one’s favor. Readers can discover how commodity options fundamentally differ from stock options, and that is the reason why conventional options strategies, targeted at equities, often fail when dealing with commodity options. A complete work on commodity options trading, which would help readers further evolve their understanding of this subject and its intricacies.
A commendable work on commodity options trading, which lays bare the differences between equity and commodity options apart from discussing effective options strategies for commodities. This work also discusses how to hedge market volatility and identify the right kind of opportunities for trading. A highly recommended read for students and professionals alike.<< Get this book >>
#6 – A Trader’s First Book on Commodities:
An Introduction to the World’s Fastest-Growing Market
by Carley Garner (Author)
An eye-opening revelation on the commodity market by an expert in the field which explains how an average investor can trade in commodities without making all the mistakes incumbent on a newcomer. This work introduces readers to a wide range of concepts, tools, and techniques which can be utilized to successfully trade in commodities depending on their exposure in dealing with specific types of commodities, level of experience, and risk capital, among other things. To help explain the risks involved with greater clarity, the author has discussed the failure of MF Global and PFG Best and what it means for investors. The work offers the latest information on technological changes and advanced techniques for commodity trading and how traders can become equipped with the right kind of tools to manage risk efficiently and make the right kind of trading decisions.
An ideal introductory book on commodity trading which takes the readers through each and every measured step, carefully weighing the pros and cons of commonly applied trading and investing strategies. The author also discusses the larger appeal and potential of the commodities market, along with a detailed analysis of well-known fund failures. A must-read for every entry-level trader and anyone with interest in the commodity market.<< Get this book >>
#7 – Trading Commodities and Financial Futures:
A Step-by-Step Guide to Mastering the Markets (paperback) Paperback
by George Kleinman (Author)
A powerful introduction to commodity futures helps understand the rise of the commodities market in recent years, how it functions, and why you should invest in it. It is no longer the domain of those who specialize in commodities, and an average investor and trader can acquire knowledge of the basics of commodities and trade profitably within a relatively short span of time. Usually, those who invest in equity or debt securities are wary of commodities as a rather risky and unpredictable market, but this work lays these fears to risk by systematically exploring every aspect of commodities and even goes ahead to acquaint the readers with the futures market in commodities which was commonly perceived to be off-limits for those new to commodities. For a beginner’s work, it offers a number of advanced trading strategies for traders and ways to personalize them successfully.
An interesting work on commodity futures is aimed at the beginner to intermediate level traders and investors in the commodities market. The author builds up the logic behind rather sophisticated trading strategies applied in the futures market for commodities from the very basics to help readers get a better sense of what is actually going on. What makes this work a perfect addition to everyone’s collection is the lucidity with which these complex concepts are spelled out for an average investor to understand and apply to make good profits while managing risk efficiently.<< Get this book >>
#8 – Hedging Commodities:
A practical guide to hedging strategies with futures and options
by Slobodan Jovanovic (Author)
Challenging the common perception that hedgingHedgingHedging is a type of investment that works like insurance and protects you from any financial losses. Hedging is achieved by taking the opposing position in the market. is a complex tool not fit for newcomers or average investors, this work outlines a successful approach to hedging in the commodities market. Hedging is commonly utilized for neutralizing risk, but when it comes to practice, few traders and investors actually make it a point to manage risk efficiently by utilizing hedging techniques. One of the most common reasons is a lack of awareness and proper knowledge of tools and techniques employed for the purpose. This work is intended to fill that gap and help traders explore futures and options in the commodities market. To achieve this, the author presents key concepts through illustrations, utilizing tables, diagrams, and visual patterns to convey the ideas and techniques with greater ease. A valuable learning resource for amateur as well as professional traders.
Going beyond the rhetoric, this work is actually intended to teach useful hedging strategies for the commodities market utilizing powerful examples and illustrations. Readers would learn the value of hedging as a risk management strategy on a broader level and discover a wide range of successful strategies through tables, diagrams, and visual patterns designed to help understand and compare varied strategies without much effort. An essential work on commodity futures and hedging techniques for the novice as well as experienced traders.<< Get this book >>
#9 – Understanding Oil Prices:
A Guide to What Drives the Price of Oil in Today’s Markets
by Salvatore Carollo (Author)
This top commodities book addresses some of the most fundamental questions concerning the oil industry and its functioning. The author questions commonly accepted line of reasoning behind the rise and fall of oil prices and cite the 2008 crisis as a case in point when commonly accepted theories fell flat on their face, failing to explain how oil prices plummeted from $144 to $37 per barrel. He proposes that the oil industry is actually governed and shaped by a wide range of factors, usually not taken into account by investors. He discusses how the oil futures market became detached from the crude market in 2000, leading to unprecedented levels of speculative investments in the industry henceforth. All in all, excellent work on how the oil industry really works and how to study key economic and geopolitical factors driving the industry for over four decades which can help professional investors immensely.
A pathbreaking approach to understanding the intricacies of the oil industry and understanding the true reasons behind changes in oil prices globally. In a bold move, the author discards some of the most common reasons cited by industry and media for the sudden rise and fall in oil prices and instead proposes how ill-conceived government policies, financial speculation, and massive disinvestment in refinery capacities have shaped the industry over the years. An eye-opening work on the oil industry for professional commodity traders and investors, policymakers as well as the media.<< Get this book >>
#10 – Buy Gold and Silver Safely:
The Only Book You Need to Learn How to Buy or Sell Gold and Silver
by Doug Eberhardt (Author)
This best book on commodities trading introduces the average investor to the how and why of investing in gold and silver, along with discussing successful strategies. Usually, people do not know enough about gold and silver to be able to manage their risk efficiently and for fear of entering unknown territory, miss out on some great opportunities to diversify their portfolios with the help of gold and silver. The author lays down some of the basic rules which would help investors navigate their way successfully through the maze of risk and opportunities which lie ahead of them in precious metals investing. It also covers a basic understanding of the commodities market as a whole and how is one supposed to diversify their complex portfolios with the help of some reliable commodities. A must-read for every investor who wishes to make the most of long-term growth opportunities in this market.
A concise but reliable guide to understanding the principles behind investing in gold and silver, two of the most common precious metals, which everyone knows about, without being actually aware of how to profit from them. The author has successfully presented these precious metals as useful precious metals for diversifying the portfolio of any investor. This work has all you need to know about the price changes for these precious commodities and how to manage the risk efficiently.<< Get this book >>
#11 – A Trader’s First Book On Commodities
by Carley Garner
One can make very large profits by trading commodities, however significant practical knowledge of the associated risks and market characteristics before commencement. This commodities trading book is a simple, practical, and useful guide for traders who are new in the commodities market. Drawing on the vast experience of the author, the following aspects have been successfully highlighted:
- Master the basics of trading commodities and avoiding mistakes for beginners
- Get what is needed and prevent losses for things which are not required
- Making a prediction of prices, managing risks, and make trades reflecting the analysis
- Know what is one buying, the costs associated with it, and risks and returns it can offer.
This commodities trading book is offering specific guidance on how to calculate profit, loss, and the risk in commodities and also choosing the best brokerage firms. It will clearly aid in decoding of the colorful language of the industry and the walking through the entire trading process. Sufficient coverage is also given to critical topics such as Trading plans, handling of margin calls, and even maintenance of emotional stability as a commodities trader. It is a highly recommended commodities trading book for new traders.<< Get this book >>
#12 – Guide To Investing in Gold & Silver
by Michael Maloney
This commodities trading book will have its core focus on the importance of Gold and Silver as an investment in the overall portfolio. It will communicate the readers about:
- The essential history of economic cycles which make Gold and Silver the ultimate monetary standard.
- The way in which the governments are driving inflation by dilution of money supply and weakening of money supply
- The reason why precious metals are one the easiest, profitable, and safest investments that can be made
- Where, when, and how to invest money and realize maximum returns irrespective of the state of the economy
- Essential advice on avoidance of middlemen and taking control of financial investment and portfolios by making the investments directly into the market.
The author has highlighted the historical background of paper currency, precious metals, and its economics. The aspect that has gained a lot of attraction is how the Western civilization collapse could lead the entire financial world in a downward spiral and how in such a time, the accumulation of precious metals will offer non-parallel benefits. It is a highly recommended commodities trading book for any investor and how to protect wealth under unforeseen circumstances.<< Get this book >>
#13 – Stack Silver Get Gold
by Hunter Rilley III
Commodities Trading Book Review
This book on commodities trading has been appreciated for its simplicity and the experience of the author, who has an experience of over 15 years of trading Gold and Silver under its belt. It will reveal all the street smart tactics an investor is required to know for making investments in Gold and Silver. One will have answers to various aspects, such as:
- Seven types of Gold and Silver bullion to buy and liquidate quickly if required to
- Eleven types of gold and silver to avoid
- Most secure places for securing precious metals
- How to store the precious metals in another country by setting up an offshore precious metals storage system
- The precise strategy towards investment in metals and bullion
- The various tax strategies, IRS reporting requirements, travel restrictions, and how to maximize benefits out of them. Investors are required to know about financial rules and governing bodies such as FATCA, FBAR, and other rules concerning Gold and Silver.
- It will also highlight on tackling of investments to be made online and to constantly monitor the performance.
- Extraction of benefits by including gold and silver bullion in 401 (k)
#14 – The New Case for Gold
by James Rickards
In one of the boldest attempts to publicize the value of Gold around the globe, this book on commodities trading states how gold is an irreplaceable store of wealth and a standard of currency. As most of the macroeconomic factors cannot be predictable, Gold is one of the most prudent assets to own and is the single most important wealth preservation tool for banks and individuals. The author has specifically laid focus on historical case studies, monetary theory, and personal experience as an investor to state:
- The panic post the Global Financial crisis of 2008 and how can it lead to another crisis taking birth
- The possible situation on how could panic buy set in and how then only Central Banks, Hedge fundsHedge FundsA hedge fund is an aggressively invested portfolio made through pooling of various investors and institutional investor’s fund. It supports various assets providing high returns in exchange for higher risk through multiple risk management and hedging techniques., and other big players will be able to buy and retain gold as a commodity.
- If Gold is monitored and controlled on a continuous basis, there will never be an artificial scarcity of the same, and a stable non-deflationary price can be defined.
The book is concise, most factual and arguments presented are based on sound economic principles. Various scenarios are presented of how they could unfold in the future without making predictions. Suggestions have also been made to invest only 10% of investable assets in gold so as to minimize the quantum of losses in case of uncertainty.<< Get this book >>
#15 – Crude Volatility
by Robert McNally
Since OPEC has loosened its grip over the pricing of Oil and its commodities, the oil market has been rocked by wild price swings, something which has not been witnessed over multiple decades. The prices rose to as much as $145 per barrel in 2015 and also touched a trough of $25 in 2016-17 due to multiple macroeconomicMacroeconomicMacroeconomics aims at studying aspects and phenomena important to the national economy and world economy at large like GDP, inflation, fiscal policies, monetary policies, unemployment rates. situations. This book on commodities trading explains how past time periods of stability and volatility in prices of oil aid in understanding the boom-bust era. Such levels of volatility have been considered a punishment inflicting pain not only in the Oil industry but also in the broader economy and geopolitical landscape. The author helps in connecting the dots on how oil has become central to the financial world and the reason it is subject to extreme fluctuations in price.
It offers an excellent overview of the market cycle in this industry in a journalistic style while addressing various controversial theories such as ‘peak oil,’ or the role of OPEC and the US Shale industry in the most recent glut. Additionally, light has been cast on logical analysis of demand and supply and how the lags in increasing and decreasing production within the oil industry lead to the inevitable booms and bust cycles witnessed around the globe.<< Get this book >>
#16 – Trade Stocks and Commodities with the Insiders: Secrets of the COT Report
by Larry R Williams
One of the most successful traders, Larry R Williams, reveals industry secrets which offer guidance to investors and traders for successful investment and side-by-side trading with larger commercial interest around the world. Readers are introduced to the COT (Commitment of Traders), which is one of the best resources for achieving trading success. It systematically walks the readers through the use of the information contained in the COT to set up trades. It even discloses a new indicator that is claimed to be more powerful than any other index related to the COT report, which is prepared.
The book circulates around the smart people who have made money in this industry over the past couple of decades and how one can profit from their actions – whether one is interested in agricultural commodities such as soya-beans or the new breed of financial commodities such as currency and stock market indices. The investors can focus on the true market conditions having an effect on price changes, which involves large buying and selling as well as demand/supply pressure.<< Get this book >>
#17 – Energy Trading & Investing
by Davis Edwards
Commodities Trading Book Review
Energy is one of the most vibrant and essential sectors in the global market. Volatility in the prices of the energy sector and changes in the industry offers attractive investment opportunities for savvy investors and dangers for the uninformed ones. The author offers detailed information on every topic critical to energy investors, including:
- Natural Gas, Electricity, Petroleum, Coal, Weather, and Emission markets
- Details on various financial products, including derivatives
- Examples of deal structuring explaining Spread options, spatial load forecasting, and tolling agreements
- A practical introduction to Market and Credit risk and model risk management
- A detailed explanation of Natural Gas, Storage, Logistics, and swing options contractOptions ContractAn option contract provides the option holder the right to buy or sell the underlying asset on a specific date at a prespecified price. In contrast, the seller or writer of the option has no choice but obligated to deliver or buy the underlying asset if the option is exercised.
- Coverage of specialty electric markets, purchase power agreements, and other ancillary services.
Key Takeaways from this Top Commodities Trading Book
It covers a wide range of topics for established and professional traders, retail investorsRetail InvestorsA retail investor is a non-professional individual investor who tends to invest a small sum in the equities, bonds, mutual funds, exchange-traded funds, and other baskets of securities. They often take the services of online or traditional brokerage firms or advisors for investment decision-making., MBA students, and other participants in the energy market. A number of jargon used in the financial and energy markets have been smoothly explained, and the examples are made easily understandable to the average reader. A wide range of topics have been mentioned, from traditional and emerging markets to need-to-know financial principles and proven investing strategies.<< Get this book >>
#18 – The Colder War
by Marin Katusa
This commodities trading book takes a look at the ways in which the Western world is ceding its position in the energy market and what steps can be taken to prevent it. Russia is now amidst a rapid economic and geopolitical revival under the rule of Vladimir Putin and studying his rise to power, thereby providing the key to understanding the shift in energy trade from Saudi Arabia to Russia. This upcoming rise to power threatens the control of the United States. The following aspects have been stressed through this book:
- The rise of Russia to the center of the world’s energy market through Political coups, Assassinations, and Hostile takeover strategies.
- Following the rise of Putin and how has it disturbed the global balance of tradeBalance Of TradeThe balance of trade (BOT) is the country’s exports minus its imports. BOT is one of the significant components for any current economic asset as it measures a country’s net income earned on global investments.
- Understand how Russia has toppled the Mafia barons to position itself as the most powerful force in the energy market.
- A detailed study on the long-range plans of Putin and its potential impact on the United States and the US Dollar.
This book lays emphasis on the fact that if Putin’s plans materialize, not only will Russia starve out other countries out of power, but the BRIC countries will replace the G7 in terms of wealth and financial power.<< Get this book >>
#19 – Commodity Options
by Carley Garner
Investors around the globe are discovering the enormous opportunities available through commodities options trading. However, since commodities have different underlying characteristics from equitiesEquitiesEquity refers to investor’s ownership of a company representing the amount they would receive after liquidating assets and paying off the liabilities and debts. It is the difference between the assets and liabilities shown on a company's balance sheet., such options will also behave in a different manner. This commodities trading book commences on how commodity options work, how they have evolved, and why conventional options strategies tend to fail in the commodity options market. Extensive examples have been used based on own researches made, and other factors emphasized are:
- The reason for the uniqueness of commodity options and what does it mean to the investors
- Timing of trading short options and how to manage the commodities riskManage The Commodities RiskCommodity risk management is the process of managing the commodity risk using various strategies like hedging a commodity through a forwarding contract, a futures contract, or an options contract. Commodity risk refers to the risk that a company bears as a result of fluctuations in a commodity's price and other parameters over time.
- Master strategies designed for diverse market conditions
- Exploiting short-lived trends through ‘synthetic’ swing trading
Certain warnings about specific futures options positions are beyond the recognition of the importance to the beginners in this area, which have been smoothly explained in a simplified language. The author carefully outlines the unique environment of the futures markets; lower liquidity tactics employed rather than equities, which in turn can highlight problems in employing various strategies. Hence, as a beginner, one should make reference notes from this guide.<< Get this book >>
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