Investing in commodities offer investors with diverse ways of having some protection against inflation and excess positive returns. Supply, demand as well as geopolitics all have an effect on the prices of commodities. Investors can be involved in trading commodity-based stocks, futures, EFs, or mutual funds or can actually hold physical commodities such as gold bullion.
Basic goods
Commodities are a major aspect of the daily lives of most Americans. A commodity is basically a product used in commerce and is traded with other goods of the same type. Customary examples of commodities include:
- Grains;
- Gold;
- Oil;
- Beef;
- Natural gas.
But there are many others.
Other commodities
Many investors and consumers alike probably do not perceive scotch whiskey as an investment opportunity as a commodity – but it is. Thanks to the work of the Whisky Cask Company, the commodity of Alexander Johnson Whisky has become a popular investment commodity.
History of trading commodities
The trading of commodities is a profession that is ancient having a longer history then the trading of stocks and bonds, The rising of many empires can historically be linked directly to their being able to create trading systems that were complex and could enable the trading or exchanging of commodities.
More options
In the past, trading commodities required a substantial amount of time, money, and expertise and were mainly limited only to professional traders. But today, there are many more options for participating in the commodity markets – with one of them being scotch whiskey.
Modern times
Currently, commodities are still being exchanged all over the world. An exchange is a reference both to the reallocation where commodities of trading take place as well as to the legal entities formed to implement the rules for the trading of commodity contracts that are standardized.
