Commodities

Commodities are raw materials — oil, gold, wheat, copper. They diversify a portfolio and hedge inflation. Gold is a classic safe-haven. Oil prices affect nearly every industry. Commodity prices often run counter-cyclically to bonds.

Quick quiz and answers

Which commodity is traditionally considered a safe-haven asset?

Answer: Gold. Gold has been a store of value for millennia — investors flee to it during uncertainty, crises, or high inflation.

Copper prices are often called a barometer of:

Answer: Global economic health (demand rises with construction/manufacturing). Copper's industrial uses make it highly sensitive to global growth — hence the nickname "Dr. Copper."

How can retail investors get commodity exposure without owning physical goods?

Answer: Via commodity ETFs, futures ETFs, or mining stocks. Commodity ETFs (like GLD for gold or USO for oil), futures, or related equities provide easy commodity exposure.

Oil prices falling significantly typically benefits which sector?

Answer: Airlines and transportation companies. Airlines and trucking companies are fuel-intensive — lower oil prices directly reduce their biggest operating cost.

Practice this with $10,000 in virtual cash in Tradecraft, free paper trading with real market data.

Open Tradecraft · All lessons · About · Terms · Privacy

Educational content only, not investment advice. Tradecraft is a simulator; no real securities are bought or sold.