There are four main categories of goods:
1. Metals - including gold, silver, platinum and copper.
2. Energy - including crude oil, heating oil, natural gas and gasoline
3. Livestock and meat
4. Prostitutes - such as corn, soybeans, wheat, cocoa, sugar, cotton, rice.
Everything that is invested in stock exchanges can fluctuate significantly on a daily basis due to natural disasters and geopolitical crises. Or demand and supply.
The commodity trade is contained but is usually invested in the form of forward contracts, which gives the contract holder the right to receive a certain quantity of goods. Futures are also invested in commodities exchanges and can be used to speculate on a change in the price of a commodity.
How to invest goods:
If you think the price of platinum will increase in the coming months. Buying platinum in concrete terms is possible but will be cumbersome. Alternatively, you can buy platinum quotes, which are priced on the basis of futures for the same commodity. This means that you do not have to store the item effectively, and that you can use the leverage to trade on a much larger amount of platinum, and increase your profit if the price of the commodity increases.
Example
Platinum was quoted at $ 1,199.50 to $ 1,200. The second is the asking price you need to pay to buy a long term deal. If you are optimistic about the platinum movement, you have bought a 10-ounce contract on demand, which is $ 12,000 worth of platinum. If the margin in your account is 5%, you need $ 600 of the financial value or margin available for that purchase.
A month later, platinum is quoted at $ 1,249.50 to $ 1,250. You can close your contract and sell it at a bid price of $ 1,249.50. The platinum value on which the deal was opened rose from $ 12,000 to $ 12,495 - an increase of $ 495. You have to pay the rollover fee for the $ 600 you borrowed during the month, but you are likely to earn more than 75% on your business.