Physical Commodities

Physical commodities are tangible goods such as oil, gold, wheat, or metals that are bought and sold in markets. They are raw materials used in production or consumption and have intrinsic value based on their qualities and usefulness. Unlike financial assets like stocks or bonds, physical commodities involve actual items that can be touched and stored. Trading these commodities involves dealing with their physical delivery or contracts for future delivery, often influenced by supply, demand, geopolitical factors, and seasonal changes. They play a crucial role in the global economy, providing essential inputs for industries and consumers.