Have you ever wondered what pork bellies are?  It’s kind of a funny name for an investment, isn’t it?  Before I got into commodities I used to hear about them and wonder what they were.

Pork bellies are the underside of a pig — the right and left side of the belly.  They are what bacon is made out of.

And they are serious business.  If you own a contract of bellies and the price goes up just $1 a pound you make $400.  Of course, if it goes down $1 a pound you lose $400.  Wow.  That’s some kind of leverage, wouldn’t you say?

Below is a picture of a pork belly.  Looks kind of like bacon, doesn’t it?  Because that’s what they make bacon out of.  Now you know.