Why You Shouldn’t Ignore Investing in Commodities

Investors are regularly searching for ways to maximize returns while minimizing risk. One often overlooked avenue for achieving this balance is investing in commodities. In my opinion, maintaining a certain percentage of a portfolio in commodities can increase diversification and reduce the risk of the overall portfolio. Let’s explore the reasons why investing in commodities should not be ignored.

What are commodities?

Commodities are tangible assets of raw materials or agricultural products that can be bought and sold in standardized quantities. Commodities range from precious metals to energy resources like oil and natural gas and even include agricultural products like corn and wheat. While we are still likely buying stocks (“paper”), investing in commodities means buying an interest in companies that mine or manufacture or grow tangible goods.

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