Commodities

Commodities can provide diversification, a buffer against inflation, and excess positive returns to investors. Commonly traded commodities include oil, gold, platinum, palladium, silver-lithium, cotton, coffee, corn, oats, wheat, soybeans and sugar. Investors can invest either directly in physical commodities, or indirectly in commodity companies, mutual funds, or exchange traded funds.

Investments in commodities tend to shield investors from inflation and be a cautious bet against the US dollar. Commodities are in demand globally, and their worth translates across borderlines. Investing in this sector can be a reliable hedge against market downturn, making commodities a solid bet and a good choice for a diverse portfolio.