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).