Commodities are on a tear.
Whether we're talking about precious metals or energy
, commodities have posted strong gains during the past 10 years.
Take silver for example. It's up 127% this year alone. Oil touched
$100 per barrel on July 26... and this comes after the peak of the
summer driving season and the release of strategic reserves a few
But as an investment, commodities have historically proven to be
very volatile -- especially in recent years. Such dramatic ups and
downs can be a huge turn-off for some investors, especially us,
income lovers who simply want a stable investment and a steady
But what if I were to tell you there is a way you canprofit from
the bullish outlook for commodities, without risking a penny?
That's right. I've found an investment that can expose your
portfolio to the potential offered by commodities with absolutely
zero risk. It's even insured by the Federal Deposit Insurance Corp.
-- the same people that insure your
Now, I've told
about this investment before, most recently
back in April
Even so, this investment is still largely unknown. In fact, you
won't find it on any exchange, and you won't find a price chart.
But don't worry, it's simpler to understand than any stock.
The investment I'm talking about is a CD, or certificate of
deposit. But this isn't your run-of-the-mill version you'd find at
your local bank. Today, you'd be lucky to earn more than a couple
percent from a regular CD.
That's not the case here.
The official name is a "MarketSafe" CD, and right now the only ones
of this breed I've found are offered exclusively by EverBank
-- a specialty bank that offers many securities you can't find
It works a lot like a regular CD. You open an account, purchase the
CD and then wait for the payout five years down the road. But your
return is tied to the performance of a basket of assets -- usually
If the prices of the commodities that the CD is tied to increase,
then at the end of five years investors get their money back plus
the gain of the underlying assets during that time, capped at up to
50% (if the underlying commodities rise more than the cap,
investors of this CD won't see this extra return).
But here's the best part. If the market takes a turn for the worst
and we see falling
prices, then you're at least guaranteed your
back at the end of the term.
EverBank offers a variety of these MarketSafe
that track different baskets of commodities. But each CD is only
made available for a limited amount of time. For instance,
EverBank's current offering -- the "Timeless Metals" CD -- is only
available to investors until Aug. 18.
Now this investment may not be right for everyone. Like most CDs,
you must hold this investment until maturity and there are
penalties for withdrawing early. So if you'll need your money
before the end of five years, you'll want to look elsewhere. But
for many investors, this may be a great way to diversify your
portfolio without losing sleep at night.
Action to Take -->
With a minimum investment of $1,500, I think the MarketSafe CDs
offers risk-adverse investors a great opportunity to enter into one
of the most bullish runs we've seen this decade.
You can learn more about this investment by checking out
-- Amy Calistri
P.S. -- If you're an income investor, why would you buy a stock
yielding 2% when you can find one paying 26% right here? Watch this
presentation for more.
Disclosure: Neither Amy Calistri nor StreetAuthority, LLC hold
positions in any securities mentioned in this article.