Commodities are resources and products that have an equivalent utility to the consumer. The resource is then sold at in high volume at a fluctuating market price. For instance, no matter where or how it is acquire, a bushel of wheat holds the same market value. Because of this, all wheat can be clumped together and sold collectively on the commodities market.
The commodities market can be segmented into several categories including agriculture, livestock, energy, precious metals, industrial metals, and other. Agriculture includes commodities such as corn, wheat, and coffee, while livestock includes cows and hogs. Energy commodities are resources like crude oil, propane and ethanol. Precious metals include gold, silver, and platinum where industrial metals include lead, tin, and copper. The investor interest in commodities is increasing, even more so because the prices of commodities are on the rise.