What are Commodities?
Commodities comprise the following categories:
- Precious metals (such as Gold, Silver, Platinum, Palladium)
- Base metals (such as Lead, Zinc, Nickel, Copper)
- Energy (such as Coal, Crude Oil, Ethanol, Gas Oil, Gasoline, Heating Oil, Natural Gas, Propane)
- Agriculture (such as Cocoa, Corn, Oats, Rice, Soybeans, Wheat, Sugar, Cotton, Milk, Orange Juice)
- Livestock (such as Hogs, Live Cattle, Pork Bellies, Feeder Cattle)
Commodities can be owned in the form of real assets (e.g. gold coins), exchange-traded funds (e.g. gold or oil index funds) or mutual funds that track the prices of all commodity categories (e.g. Bloomberg Commodity Index).