Commodities

A beginners’ guide to investing in commodities, along with up-to-date price data and the latest news.

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This page is a beginner-friendly guide to commodities investing, covering the different ways to buy commodities and what to think about when doing so. For those with more experience, there are also links to more detailed guides, broker reviews, and the latest commodity news.

By:  & 
Updated: Jun 14, 2024

Ways to invest in commodities

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If you’re looking to buy, sell, or trade commodities, the first thing you need to do is sign up to one of the best commodity trading brokers. Depending on the platform you pick, you can access different trading options. Some brokers allow you to buy and sell each commodity directly, whereas others support CFD trading and financial products such as ETFs.

This means you can approach commodity investing in a variety of ways. The links below can help you work out which assets you want and the best broker to use for doing so. Considering these factors is the best way to make wiser investment decisions; follow the links below to improve your knowledge and chances of investment success.

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A beginners’ guide to investing in commodities

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What are commodities?

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Commodities are materials that are used in human activity, and which can be traded on exchanges. A typical commodity is naturally occurring, such as gold, oil, or wheat – but they can also be processed products such as orange juice and chemicals.

A key aspect of commodities is their ‘fungibility.’ All this means is that it doesn’t matter who produces a commodity, it is treated the same as any other example of that commodity. For example, gold that is mined in Africa is worth the same as gold of the same quality mined in Russia.

This enables commodities markets to operate globally, with millions of people investing in commodities and speculating on their future value each day. The most commonly traded commodity today is crude oil, and the price of oil is therefore one of the biggest indicators of the direction of the global economy.

How do I make an investment?

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When it comes to commodities, you have two options: short term trading, or long term investing. These approaches both have their benefits and drawbacks, and it’s important to be aware that the commodities markets are among the most volatile in the world.

To help you make an informed choice, keep reading for a summary of each method and what you want to consider when investing in commodities.

Trading ideas & analysis >

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Improve your profits by following along with our trading ideas. Get clear entry and exit points from pro-traders via our trade set-ups & technical analysis.

Gold price forecast: the bullish case for XAU is still strong
June 12, 2024
Brent crude oil price forecast after crashing below key support
June 4, 2024
Will silver hit $100 an ounce? It might outperform gold this year, according to this analyst
May 30, 2024
Orange juice price analysis: expect juicy returns ahead
May 29, 2024

Sources & references
Risk disclaimer
Max Adams
Editor of Education
Max has a keen interest in the transformative power of technology and is the founder of a platform called Current Frequencies. When not at his desk,… read more.
Charlie Hancox
Financial Writer
Alongside his passion for trading, Charlie has represented Great Britain and won national championships as a water polo player, and as a budding film director, has… read more.