A commodity market is a market that trades in primary rather
than manufactured products. Soft commodities are agricultural products such as
wheat, coffee, cocoa and sugar. Hard commodities are mined, such as (gold,
rubber and oil).Investors access about 50 major commodity markets worldwide
with purely financial transactions increasingly outnumbering physical trades in
which goods are delivered.
Why invest in commodities? Commodities allow a
portfolio to improve overall return at the same level of risk.
Like any other market, the one for commodity futures plays a
valuable role in information pooling and risk sharing. The market mediates
between buyers and sellers of commodities, and facilitates decisions related to
storage and consumption of commodities. In the process, they make the
underlying market more liquid. Any investor who wants to take advantage of
price movements and wishes to diversify his portfolio can invest in
commodities. However, retail and small investors should be careful while
investing in commodities as the swings are volatile and lack of knowledge may
result in loss of wealth.
We ensure that you book maximum returns in the Commodity
market by our superb Commodity tips.
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