commodities

Commodities, which are raw materials available for purchase and sale, include essential items like metals and energy, which are key inputs in the production of various goods and services.

Items like gold, silver, copper, palladium, and platinum (metals), along with crude oil and natural gas (energy products), are categorized as "hard commodities." These commodities can be either mined or extracted.

Given their integral role in economic processes and their unique characteristics, commodities' prices tend to fluctuate independently from other financial assets, such as stocks. This independence makes them an attractive option for diversifying portfolios for both traders and investors.

The significance of metals and energy commodities in industrial production cannot be understated. Their extensive utilization by manufacturers links their price fluctuations directly to the health and trends of the global economy.