Commodities are raw materials or primary agricultural products that can be bought and sold, typically through standardized contracts on commodities exchanges. They include natural resources like oil, gold, agricultural products like wheat or coffee, and industrial metals such as copper or aluminum. Commodities serve as the building blocks of the global economy, with their prices influenced by supply and demand dynamics, geopolitical factors, weather conditions, and economic trends. Investors often use commodities to diversify portfolios, hedge against inflation, or speculate on price movements. Trading in commodities can involve physical delivery or be settled financially, offering a range of investment opportunities across different sectors and regions. Understanding market fundamentals and global trends is crucial for effectively trading or investing in commodities.
