Commodities are raw materials or primary agricultural products that are traded on exchanges. They are typically used as inputs for other products or services, and their prices can be affected by a variety of factors, including supply and demand, weather conditions, and government policies. Examples of commodities include oil, gold, wheat, and soybeans.
Investing in commodities can be a way to diversify a portfolio and potentially hedge against inflation. However, it is important to note that commodity prices can be volatile, and there is always the risk of losing money when investing in them.