What a Commodity is – and Why Investing in Them is so Profitable

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Commodities range from gold and oil to agricultural produce and livestock

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.

3 COMMENTS

  1. I didn’t know that this is what commodity trading was all about so you can buy gold, oil and things? And then when you buy them when they go up then that is good. I was just reading that oil price is down now!

    So if we were to buy oil as a commodity we would have lost money?

    like it says here: www.instocknews.com/stocks-to-invest-in/crude-oil-stocks/2522

    I think to make money with commodity stocks you have to really understand what effects the price of these commodities. It is very politics based I think, maybe harder than investing in stocks?

  2. Commodity trading in high volumes can be very profitable,. It can also be very difficult to judge too for example with OPEC and oil, I thought for sure that oil would be on it’s way up and fast…. but no. still down.

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