Commodities are tangible assets like gold, oil, natural gas, and agricultural products such as wheat and coffee that serve as the building blocks of the global economy. These physical goods are traded on specialized exchanges worldwide and are often considered a hedge against inflation and market volatility. Investors gain exposure to commodities through direct purchases, futures contracts, exchange-traded funds (ETFs), or commodity-based mutual funds, making them a versatile asset class for portfolio diversification.

Investing in commodities offers unique benefits, including diversification from traditional stocks and bonds and protection against economic uncertainty. However, these markets can be highly volatile due to factors like supply and demand shifts, geopolitical events, and weather conditions. Successful commodity investing requires thorough market research, a clear understanding of fundamental drivers, and effective risk management strategies to navigate the dynamic global landscape.