Beyond stocks and bonds, there’s a whole world of stuff to invest in – commodities! Think oil, gold, wheat, coffee, even pork bellies (yes, really). Commodities are raw materials or primary agricultural products, and investing in them can diversify your portfolio and potentially hedge against inflation. Imagine investing in things you can (mostly) touch, from energy to food – the building blocks of the global economy.
Commodity ETFs (Exchange Traded Funds) are the easiest way to invest – track commodity indexes or specific commodities like gold (GLD), oil (USO), or agriculture (DBA). Commodity futures contracts are more complex, higher-risk investments for experienced traders (beginner beware!).
Commodities can be volatile and influenced by global events, supply and demand, and weather patterns. Commodities for beginners: Start with ETFs, understand the risks, diversify your portfolio beyond stocks and bonds. Commodities: Investing in the raw materials of the world.