Definition
Commodities are basic goods used in commerce that are interchangeable with others of the same type. Categories include energy (oil, gas), metals (gold, copper), and agriculture (wheat, coffee). Investors access commodities through futures, ETFs, or commodity-producer stocks. They provide inflation hedging and portfolio diversification.
Example
An investor buys a gold ETF for inflation protection and portfolio diversification during periods of economic uncertainty.
FAQ
What is Commodities?
Raw materials or primary agricultural products that can be traded.
Why is Commodities important?
Commodities helps investors evaluate alternative investments and make more informed decisions.