Have you also been flooded with investment topics on your social media feed recently? The word Commodity has been appearing frequently, from coffee and sugar to gold and crude oilâseems like everything can be traded. But honestly, many people don't even understand what they are trading, let alone how to make money. Today, let's talk about what exactly Commodity is and why itâs worth your attention.
What exactly is a Commodity? A plain language explanation
Commodity, translated into Chinese, means goods or commodity futures, but here we're not talking about the stuff you buy at the supermarket. It refers to raw materials and primary products that can be used to produce other goods or for direct consumption.
Specific examples include: gold, silver, crude oil, natural gas, coffee beans, sugar, copper, aluminumâthese are all examples. You can think of them as the "blood" of the global economyâwithout these raw materials, factories can't operate, and people can't get food.