Although investing in raw commodities can be a risky venture, the value and trends found in their movements can show opportunity. If a particular commodity shows a particular trend, it can be applied to a sector that uses that commodity as a manufacturing resource. In this way an investor may be able to profit as a trend matures or retreats.

One such trend may be found in the recent Asian commodities market for Lithium and Iron ore. Production has been forecasted to increase, and is currently at higher levels than in past periods. Iron ore is an opportunity as it relates to overall steel production while Lithium production, in a general sense, can be applied to products such as cell phone, laptop computer and environmentally sound car batteries. There is absolutely no guarantee in following a commodity pricing trend of this nature in this type of market, but it does add to the potential for locating a solid investment opportunity.

As these two commodity opportunities are concerned, one might consider the efforts of companies working in the electric battery area. Efficiencies can be found to improve these batteries through differing techniques but, at present, Lithium is a constant. Lower cost for the raw material makes for a less expensive product and a more profitable product. Lower cost Iron ore speaks volumes in many ways, past an improving economy.

An investor doesn’t need to invest in a raw commodity but would be wise to pay attention to movements of particular commodities to find manufacturing companies that may profit from lower raw material costs. Overall, this approach helps to direct a sector based approach to individual areas where one may be interested. Iron and Lithium are only two, but form a solid base in today’s economy. Where and how an investor applies these trends is an individual preference.