certified ManagementGoeroes expert badge
2 mins read

The full definition of commodities is quite complicated, but most people will define commodities as another word for raw materials. One of the characteristics of commodities is that they are freely tradable, and that who made them (provided the quality is the same) has no influence on the price. Examples of commodities are:

  • Sand
  • Oil
  • Coffee beans
  • Iron
  • Gas
  • Grain
  • Sugar
  • Gold

Much is traded in commodities. In recent years, prices for commodities have risen sharply and were, therefore, an interesting investment. There were two main reasons why the price of commodities rose sharply. One was the rising demand. This is mainly due to the emerging economies of the BRIC countries. The other was the economic uncertainty that caused investors to leave stocks and bonds and "flee" into commodities. Commodities were seen by rising demand as a relatively safe investment. Especially because commodities (as opposed to money and shares) always have an intrinsic value. The price may fall, but it will never be worth nothing because you can make something out of it. If a company goes bankrupt, or the belief in a currency is completely gone, then you have nothing left. Management gurus such as Willem Middelkoop and Jim Rogers were (or rather are) the biggest advocates for buying commodities and the above theory. If you had followed their advice on time, you could have made a nice big bang.

Article rating: 4.7 (3 reviews)
Share this article

Related articles

Popular articles

Show more

Direct contact with a business consultant

Amber Hawkins
Amber Hawkins
$ 0.20 PM
I'm the ONE Computer trainer and consultant
show profile
Computer training
Lucas County ,  United States
Languages: English
consultancy social media computer social media management business consultancy clerical entrepreneur computers encouragement small business certifications toledo ohio guide ubereats delivery tips outlook excel word
Amber will be available in 18 mins
Call anyway
Kelly Malone
Kelly Malone
$ 0.42 PM
I'm the ONE who can help you get the job DONE!
show profile
Small Business Owner
Suffolk County ,  United States
Languages: English
communication marketing branding business consultancy small business marketing coordinator market research documents and regulation document preparation photography events wedding video photography photoshop photo editing
Kelly will be available in 18 mins
Call anyway
Ian Holness
Ian Holness
$ 10.00 PM
I'm the ONE I'm the ONE long life learner with lots of expertise
show profile
Toronto Division ,  Canada
Languages: English
consultancy consultant networking tutoring mentorship marketing assembling career personal goal oriebtef career coaching savvy tutoring one on one knowledgeable
Ian will be available in 19 mins
Call anyway
Mariana  Leon
Mariana Leon
$ 0.09 PM
I'm the ONE soy de personalidad reparadora, por lo que tratare de ayudarte en todo hasta llegar a los objetivos, tu logro tambien sera el mio :)
show profile
psicologa comunicacional
Mexico City ,  Mexico
Languages: Spanish, English
consultant business development concepts new companies experiences mistakes sharing ciudad de mexico mexico cdmx coldelvalle narvarte productos naturales organico remedios caseros
Mariana will be available in 1 hour 18 mins
Call anyway
Farooq Alias
Farooq Alias
$ 0.13 PM
I'm the ONE for ad sales, marketing, business, social advice
show profile
Senior Sales Exec
Federal Territory of Kuala Lumpur ,  Malaysia
Languages: English, Malay
consultant marketing sales social media youtube noob csgo computer pc pc assembly pcbuild pc masterrace pc build life advice love advice
Farooq is available now
Call me