WHAT IS COMMODITY?
CBoth traditional and contemporary
commodity markets have had a significant economic influence on both individuals and
nations. On the Silk and Spice Routes in these countries, the market has been there for millennia.
Although the impact
of commodities markets on history is yet unknown, it has been hypothesized that China may have engaged in
rice commerce
6000 years ago. The sources of raw materials utilized in production are concentrated in commodities.
Depending on the political, economic, or cyclical supply-demand balances, commodity prices might change.
Because of
this, changes in commodity prices may seem to be an effective way to invest and generate large returns
quickly.
Commodities fall under the category of high risk/high return investment goods due to their significant
volatility.
The 4 Categories Traded in Commodities are;• Energy
(crude oil, heating oil, natural gas and gasoline)
• Metals (gold, silver,
platinum and copper)
• Livestock (Live cattle)
•
Agriculture (corn, soybean, wheat, rice, cocoa, coffee, cotton, sugar)
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MARKET
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