Lux Investing

When someone says they are invested in commodity, what it means?

Tell me the basic thing about my question. To the first answerer : there is no site like that.

Public Comments

1. Commodities are basic goods used in commerce that are interchangeable with other commodities of the same type. Commodities are most often used as inputs in the production of other goods or services. Quality may differ but essentially is uniform across producers. Exchange traded commodities must also meet specific minimum standards (aka basic grade). In plain english, they are talking about oil, gas, corn, orange juice, metals, etc. Most often when we hear about commodities these days it is refering to oil or corn (due to the whole ethanol production thing). Check out the NYMEX (NY Mercantile Exchange) for more info on exact prices, etc.
2. Investing in commodities means that they are investing in movements of indexed prices on hard goods, such as: cattle, pork bellies, orange juice; agricultural products like corn, soybeans, wheat; oil, coal and gas (which are energy commodities, but trade slightly differently); precious metals (like gold, silver and platinum); or industrial metals (like aluminum, nickel or iron ore). In the US, you can trade futures or options of these commodities (which are bets made on future price movement) on exchanges such as the NY Mercantile Exchange or the CBOT (Chicago Board of Trade)
3. rubber, corn, raw sugar, soybean, arabica coffee, robusta coffee, red bean, that is part of commodity I know. You can buy or sell first when you invest on commodity