Commodities are essentially raw materials. Everything ranging from everyday items like corn or wheat to luxury items like diamonds as well as precious metals, gold, silver and of course, oil.
Also included in commodities are things like livestock, yes you can actually buy stocks in livestock!
The commodity market lists prices for all of these different kinds of commodities, and these prices rise and fall continually for a number of different reasons.
If a commodity is hot then the value (price) of the commodity is increasing and buying it can be very profitable. On the flip side is a commodity is going down in price, perhaps because of a greater supply suddenly flooding the market, then this is one to get out of and sell.
We will be publishing a string of posts about how to successfully invest in commodities and make a profit, so stay tuned because this section of our site will update very soon.