An Overview of the Commodity Market
An Overview of the Commodity Market
Blog Article
The commodity market plays a crucial role in the global economy, allowing investors and businesses to trade raw materials and primary products. Commodities are broadly categorized into:
- Agricultural (wheat, corn, coffee)
- Metals (gold, silver, copper)
- Energy (crude oil, natural gas)
Commodity trading occurs through futures contracts, spot markets, and exchange-traded funds (ETFs). This market helps in price discovery and hedging against price volatility.
Investing in commodities requires understanding global demand-supply dynamics, geopolitical events, and economic factors. While commodities provide portfolio diversification and inflation hedging, they also involve risks such as price fluctuations and regulatory changes. Investors should use fundamental and technical analysis before trading in commodities. Report this page