Saturday, February 24, 2007
What are commodities?
Commodities have slightly different meanings in different contexts.
In everyday parlance, commodities are goods that are sold solely on the basis of price (and not based on brand name, for instance). Examples of commodities in this sense are food & grains, metals such as gold, silver etc.
In the world of investing, commodities are those items that can be traded on the basis of price. In this context, commodities could mean more than just physical commodities - they can also include whatever can be traded on the basis of price.
In everyday parlance, commodities are goods that are sold solely on the basis of price (and not based on brand name, for instance). Examples of commodities in this sense are food & grains, metals such as gold, silver etc.
In the world of investing, commodities are those items that can be traded on the basis of price. In this context, commodities could mean more than just physical commodities - they can also include whatever can be traded on the basis of price.
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