Commodities are often sold as exchange-traded products (ETPs). Such investments are a great way to diversify your investment portfolio. Most exchange-traded products invest in a pool of assets, such as oil and gold. The best thing about these ETPs is that you never own these commodities. Instead, you simply buy the rights to sell them in the future. This type of investment is risky, however.

The best way to diversify your portfolio is to consider investing in a variety of commodities. While most investors choose equities for their investment portfolios, these investments are particularly valuable for businesses that rely on them. Many companies depend on these commodities, including airlines, packaged food, and the energy industry. These commodities are known to be high-risk, but can also be a hedge against inflation. Regardless of their risk, they can be traded with any farmer, producer, or investor.

Commodities can include raw materials, agricultural products, industrial metals, and precious metals. These commodities can be traded with other businesses and can also be bought directly from consumers. These investments can be very volatile, but they typically have a low correlation with other investment types. When the stock market is in trouble, many investors turn to commodity trading as a way to increase their diversification. By diversifying their investments, they can make a huge difference in the value of their money.