Commodities
Navigation What are Commodities?
Commodities represent fundamental goods and materials pivotal in the production of various goods and services. They encompass raw materials in their unprocessed or unrefined state, such as crude oil, metals, coffee beans, and wheat. Traded on specialized markets, commodity prices are subject to fluctuations driven by factors including supply and demand dynamics, weather patterns, and global geopolitical events.
Types of commodities
Commodities can generally be divided into three main categories:
Metals
Metals stand as indispensable constituents. Precious metals such as gold, silver, and platinum hold esteemed value for their allure and rarity, while industrial metals like copper, aluminum, and iron ore serve as the backbone of construction, manufacturing, and infrastructure.
Energy
Energy serves as the quintessential catalyst propelling the gears of our modern civilization. Fossil fuels like crude oil, natural gas, and coal remain the primary energy sources for transportation, heating, and electricity generation, despite a burgeoning awareness of environmental concerns, which is fueling a transition toward renewable energy sources.
Agricultural
Agricultural commodities epitomize the essence of sustenance, nourishing billions across the globe. Grains such as wheat, rice, and corn constitute the dietary staple, while livestock and diverse crops supply essential nutrients.
