Defining Commodities

Commodities are typically the products which are extracted out of natural resources in short supply on earth, which are usually traded across global markets by the investors, with a perspective of making some gains in future, by virtue of fluctuation in market value of such products in future.

In broad perspective, the commodities which are popularly traded across the world in different commodity markets, include some mining products, non ferrous metals, precious metals, agri-products and crude oil.

Typically, all such products have a limited supply in the world, and the prices vary depending on climatic changes, the supply available compared to demand, the degree of risk associated with diminishing value of holding popular currencies like US $ and the usage of such products.