What are Commodities?
Commodities are raw materials or primary agricultural products that are traded on commodity exchanges. These goods are typically standardized and interchangeable with other goods of the same type. The trading of commodities can take place on physical exchanges, where the actual goods are bought and sold, or on futures exchanges, where contracts for future delivery are traded.
Commodities are publicly traded tangible assets, agricultural products and natural resources used in commerce and trade. The financial world splits commodities into two major categories: hard and soft. Some kinds of commodities are Precious metals such as Gold, Silver, Platinum, Wheat, corn, soybeans, Cotton, Sugar, Coal, Oil, and other fossil fuels.