If you want to diversify your investment portfolio or hedge against inflation, you might be considering investing in commodities. From gold and crude oil to wheat and coffee, there are several different ways you can gain exposure to these raw materials.<\/p>
In this guide, we\u2019ll explore how to trade commodities in Canada, the pros and cons of trading commodities, and the best platforms to check out when you\u2019re ready to invest.<\/p>
Commodities are tradable raw materials. These basic goods can be sorted into four broad categories: metal, energy, livestock and agriculture.<\/p>
The commodity market predates the stock market, as people have exchanged commodities like gold, food and livestock for centuries. Today, the modern commodities market operates as publicly traded exchanges that facilitate the movement of contracts for physical goods.<\/p>
Investors can gain exposure to commodities through commodity futures and CFDs, by investing in exchange-traded funds (ETFs) and mutual funds, or by purchasing stocks from companies that produce commodities. It\u2019s also possible to purchase commodities as physical goods, but doing so requires you to store the goods yourself.<\/p>
While far from exhaustive, this list includes some of the more popular commodities.<\/p>