Commodities – Metal / Energy

Commodity trading is older than the stock market, and a major class of investment opportunity. You’ve probably encountered commodity trading in some form or another even if you don’t regularly participate in the trading market. These tend to be items traded in bulk, and are viewed as stable investments even when the market is volatile. At the same time, they can be subject to the whims of weather and production issues. Awook uses proprietary software to keep moment-by-moment track your commodity investments.

Types of Commodities – Metal / Energy

Commodities - Four Broad Categories

Agricultural – such as grains, soybeans, wheat and similar natural products sold in bulk.
Metal – gold and other precious metals.
Energy – fuel such as coal and oil.
Livestock – everything from cattle to sheep to chickens, and even fish.

Commodities and the Futures Market

Most commodities are traded on the futures market. People who make or produce the items enter into contracts on this market based on when the goods are presumed to be ready and delivery finalized. Some commodities are traded on the commodities exchange, where they are traded the same way stocks are traded. Generally, commodities trading is best done as a group, rather than an individual effort.

Commodities as a Safer Bet

Many other commodities exist, ranging from cotton and lumber to sugar and natural gas. Commodities are often seen as a safe bet because they are fungible. This means that as long as it’s the same item at the same level of quality to each other, it doesn’t matter where it was grown manufactured or farmed, it can be swapped out and traded in bulk.