Commodities: When we refer to commodities we usually refer to items like oil, gold, silver, copper, grains, coffee and other similar items. Investors who usually invest in these commodities do so through commodity futures contracts. These contracts are agreements to buy or sell specific quantities of a commodity at a specified price on a particular date in the future.

 

These futures contracts are traded in a futures market. If an investor wants to invest in commodities they can also do so through ETF’s that invests in commodities.