A commodity market is a physical or virtual marketplace for buying, selling, and trading raw or primary products. We are dealing currently 19 major commodity products such as gold silver, crude, copper etc…
Investors can gain exposure to commodities by investing in commodities directly via futures & option contracts.
Traders can take large positions while investing less capital. This also helps increase the potential for high profits.
Commodities maintain their value and price even during high inflation. In this environment, investors can turn to hard assets such as gold and other precious metals.
Investment in commodity futures offers high liquidity. It is easy to buy and sell commodity futures. An investor can liquidate his position whenever required.
Commodity markets can experience huge swings in prices. Smart investors can take advantage of these price swings to make gains.
Events such as natural disasters, wars, and economic crises can lead to depreciation of an investor’s assets and also lead to a rise in the prices of certain commodities.