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Economics
Markets
Commodities
Commodity
  • Commodity type
    • Hard
      • Natural resources
        • Mining/extraction
    • Soft
      • Agricultural products/livestock
  • Value
    • Spot
      • Sold for immediate delivery
      • Within a few days
      • Physical markets
      • Cash markets
    • Derivative
      • Delivery in the future
      • Commodity futures
      • Forward markets
      • Forwards, futures and options
        • Use the spot market as underlying Asset
        • Ownership in the future based on today’s price
  • Precious metals
    • Can be a good hedge against inflation
    • Broad commodity exposure can diversify portfolio
  • Hard to get direct access
    • Easier to invest in companies that do
      • Stock prices will somewhat track the commodity prices
Forward Curve