I'm not sure what insurance you buy... There are so many factors that I'd say you get very little insurance. In an ideal world yes but not in the real world. It can be argued both ways, that it's a liability. Say we hit inflation and your $5 next year is worthless. You'll be forced to sell at a price that's not market. Or global cooling kills your crops and you're now stuck with $5 - negative. Very similar to equity.
Commodities Are Not Stocks [View article]
There are so many factors that I'd say you get very little insurance. In an ideal world yes but not in the real world.
It can be argued both ways, that it's a liability.
Say we hit inflation and your $5 next year is worthless. You'll be forced to sell at a price that's not market.
Or global cooling kills your crops and you're now stuck with $5 - negative.
Very similar to equity.