Plain-English definitions, reviewed by an independent investor
Commodity
A commodity is a standardised raw material — oil, gold, wheat — traded on its grade, not its brand.
A commodity is a standardised raw material — oil, gold, wheat — traded on its grade, not its brand.
(Priced by grade and delivery, not identity)
Why it matters
It is the inflation and crisis hedge that behaves unlike stocks.
Common confusion
Commodities can stay cheap for years; timing and storage costs bite.
Frequently Asked Questions
Gold as a commodity?
Yes, the classic safe-haven commodity, often inversely jittery with stocks.
How to invest in commodities?
Via ETFs, futures, or the stocks of producers, each with different risks.