Base metals: avenues to diversify

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: pertinent to note here that investing directly in commodities is different from investing in commodity stocks (say, like Hindalco or Sterlite) because commodities work on a pure demand-supply situation and are not affected by other subjective issues like management quality, cash flows and such like. Barring man-made taxes and given the international nature of base metals, all investment automatically have a global tinge and represent the free markets in the truest sense of the word. All investments, of course, follow the risk-return paradigm and just like equity markets, returns in commodities too cannot be guaranteed. Having said that, your broker does have certain products available which are suitable for your risk appetite and funds situation. Therefore, a full-service broking house with a comprehensive and responsive research desk remains the best way to start investing in ferrous and non-ferrous metals.