Investing in commodities involves buying and selling raw materials or primary agricultural products such as gold, oil, natural gas, and agricultural products like wheat or coffee. Commodities are tangible assets that play a crucial role in the global economy and offer diversification benefits to investment portfolios.
Investing in commodities can provide valuable diversification and serve as a hedge against inflation. However, due to their inherent volatility and market-specific factors, it is important for investors to conduct thorough research and consider their risk tolerance when investing in commodities.