This, I think, is a fitting followup post after the post on Spread betting. I think commodity trades offer an alternate approach to trade your money for gains. A stock price fluctuate depending on the economy same is the case with commodities. Other important factors in commodity price fluctuation are weather, demand, supply etc.
What is commodity trading
Let’s begin with the definition of commodities trading. It’s actually self-explanatory: it refers to the process of exchanging commodities in the market. Commodities are usually resources, such as mineral or produce, that are considered to be of high value for a lot of investors, are produced in massive quantities, and possess attributes that remain the same all throughout the years.
A good example is gold. Gold is a commodity since it’s a very precious metal and valuable. In fact, the price of gold can be worth thousands of dollars in the market. There are also several countries that are currently offering, selling, and buying gold. Lastly, the characteristics of gold haven’t changed ever since it’s been discovered many years ago.