How To Invest In Commodities Philippines

How To Invest In Commodities In The Philippines: Investing in commodities in the Philippines is an interesting option as several types of commodities are tradeable both in the Philippines and overseas. But you may wonder what are examples of commodities in the Philippines, and more importantly, how can you invest in commodities as a Filipino entrepreneur?

In today’s guide, we will be covering the process of investing in commodities by answering some of the biggest questions. These include questions such as what are the commodity laws in the Philippines? Is trading commodities in the Philippines a good idea?

Table of Contents

What Are Commodities Examples In The Philippines

Commodities are essential goods exchanged for other commodities or other tradeable assets. In most cases, commodities are a form of natural material such as oil, silver, sugar, wheat, and so on.

Many commodities are naturally available in some countries and not in others. For example, wheat is a commodity grown in very cool climates, and therefore, 90%+ of wheat in the Philippines is imported from other countries. Another example includes Venezuela & Saudi Arabia, which have the largest oil reserves globally.

According to commodity.com, gold is the number 1 commodity export in the Philippines at $2 billion. Bananas follow this at $1.8 billion, Coconut Oil at $1.3 billion, Refined Copper at $1.1 billion, and finally Copper Ore at $670 million.

Interestingly, the Philippines has become somewhat of a leader in technical trades over the years. Even though these are technically not commodities, computer parts, software, transformers, and much more have become common exports in the Philippines

What Is The Commodities Law In The Philippines

The Republic act no. 10623 (previously the republic act no. 7581) is the most common law regarding commodities in the Philippines. This specific law is also titled the price act.

10623 states the following: act protecting consumers by stabilizing the prices of basic necessities and prime commodities and by prescribing measures against undue price increases during emergencies and like occasions” and for other purposes.

A few important points to note are the following;

Basic necessities’ are goods vital to the needs of consumers for their sustenance and existence in times of any of the cases provided under Section 6 or 7 of this Act
Unless sooner lifted by the President, price control of basic necessities under this section shall remain effective for the duration of the condition that brought it about, but not for more than sixty (60) days

The Department of Trade and Industry shall, in consultation with the members of the Price Coordinating Council and stakeholders, promulgate the necessary rules, regulations, and procedures for the effective implementation of this Act within ninety (90) days upon its effectivity and shall monitor strict compliance therewith.

In addition, another republic act that is closely linked to commodities in the Philippines is number 6124. This act states the following: An act providing for fixing the maximum selling price of essential articles or commodities, creating the price control council, and other purposes.

If you are not looking to invest in commodities in the Philippines but instead are looking to start a business, it is recommended to contact a local attorney in this situation. Now we know some basic laws around the commodity markets in the Philippines; one question you may be wondering is, is commodity trading in the Philippines a good idea?

Is Commodities Trading In The Philippines A Good Idea

Several different commodities can be traded. This can include anything from wheat to sugar to oil. But the trading platform you use (commodity companies in the Philippines or overseas) may have limited commodity options.

Nevertheless, during certain times such as shortages or conflicts worldwide, the commodity markets respond. Therefore, if you can invest at the right time at the right price, commodities can be a very good idea and an excellent form of investing in the Philippines.

But as we know, with investing comes risks; this is certainly true when investing in the commodity markets in the Philippines. If you are looking at an alternative investment in the Philippines, the commodity market offers a fantastic option, but research and careful calculation should always be made when investing in commodities of all types.

How To Invest In Commodities In The Philippines

So the ultimate question today is how to invest in commodities in the Philippines. The great news is it is straightforward to invest in commodities in the Philippines in today’s modern world. Investors will need to follow a simple step-by-step process.

1. Research The Commodity Market

The most important stage for any new investment is the initial research. There are several different types of commodities. Deciding on what commodity to invest in is key. As we have seen in the recent Russian conflict, oil, gold, and other commodities have skyrocketed in value. During unprecedented times the markets are often highly volatile.

2. Find A Reliable Commodity Supplier

During your initial research looking for commodity trading companies in the Philippines, you may encounter the Manila Commodity Exchange. The MCE is located in Makati. Additionally, some smaller exchanges are registered in the country; however, most investors from the Philippines choose a more reliable trading platform such as Etoro.

Etoro is one of the most well-known trading platforms globally, and because of this, its platform has an element of trustability and reliability. I have attached the full guide on how to invest in commodities in the Philippines using Etoro for those who are looking for more detailed instructions.

3. Make Your Offer And Invest

The third and final stage on how to invest in commodities in the Philippines is by making an offer and investing. Most online platforms (such as Etoro) allow commodity traders to buy and sell commodities online; therefore, investing in commodities in the Philippines can be as simple as deciding your price and purchasing your commodity.