Commodities Online is a private company in the commodities wholesaling business. Commodities Online negotiates purchase contracts with producers of commodities and simultaneously negotiates sales contracts with distributors of those commodities. These contracts are referred to as “pre-sold” or “buy/sell” commodities contracts.
Commodities Online sometimes negotiates joint venture agreements with producers who already have a buyer for their commodities, but who need funding for production. These joint venture agreements are functionally equivalent to pre-sold contracts.
Commodities Online offers a confidential subscription service through its Web site for qualified investors who wish to participate in the commodities contracts that Commodities Online has negotiated. The subscription service allows investors to purchase participations in commodities contracts such as seafood, sugar, and metal ores. Participation in contracts is self-directed by the subscriber. As the subscriber base grows, a larger assortment of physical commodities contracts will become available through our confidential subscription service. Participating in these contracts allows the individual investor an opportunity to earn attractive risk-adjusted returns without having to commit all of the relatively large amounts of capital involved in such contracts.
Commodities Online does not charge investors a commission on their contract participations. Instead, Commodities Online shares in the profits on the commodities contracts as described in the Master Subscription Agreement. In this way, the interests of the investors and Commodities Online are aligned: if the investors do not profit from a particular commodities contract, then neither does Commodities Online.
Commodities Online has established relationships with both producers and buyers, which relationships are the key to its business model. We continue to seek out new relationships with both producers and buyers as the business grows. Commodities Online was created to give the individual investor access to the incredible opportunities in the world of physical commodities.