Commodities asset class

Commodities

Commodities are basic goods that can be transformed into other goods and services. Examples include metals, energy resources, and agricultural goods.

Commodities are crucial to the economy and, in some cases, are viewed as a good hedge against inflation.

Their return is based on supply and demand dynamics rather than profitability. Many investors invest indirectly in commodities by buying shares in companies that produce them. However, there is also a huge market for investing directly, whether that is actually buying a physical commodity with the view of eventually selling it for a profit or investing in futures.

Reading material

1. Commodities https://www.investopedia.com/commodities-4427780
2. Commodities: The Portfolio Hedge https://www.investopedia.com/articles/trading/05/021605.asp
3. Commodity investing and its role in a portfolio https://corporate.vanguard.com/content/dam/corp/research/pdf/commodity_investing_and_its_role_in_a_portfolio.pdf
4. Precious Metals ETFs: What They Are and How They Work https://www.investopedia.com/precious-metals-etfs-8549823
5. How to Invest in Commodities https://www.investopedia.com/how-to-invest-in-commodities-7480946
6. How to Invest in Gold and Silver https://www.investopedia.com/how-to-invest-in-gold-and-silver-7369625
7. Commodity Investing: Top Technical Indicators https://www.investopedia.com/articles/active-trading/102314/top-technical-indicators-commodities-investing.asp
8. What Is a Commodities Exchange? How It Works and Types https://www.investopedia.com/terms/c/commoditiesexchange.asp

Tags

1. Despite Gold’s Record Surge, Buffett Holds Back: Uncovering the Reason for His Reluctance
2. Robert Kiyosaki says this 1 asset will surge 400% in a year — and he begs investors not to miss its ‘explosion’
3. Ray Dalio to Investors: Choose Gold Over Treasurys for Financial Stability