Glossary · from the DESK dictionary
Commodity
A physical good such as oil, gold, or wheat traded on specialized markets.
In plain words
Basic, usually standardized physical goods traded as their own asset class.
In more detail
Commodities are usually traded via futures, since physical storage is impractical for most investors. They're often considered an inflation hedge and diversification tool.
Example
Gold is traditionally seen as a 'safe haven' during crises and a hedge against inflation.
What it means for traders
An important standalone asset class for diversification and macro hedging.
Common pitfalls
Commodity prices can be very volatile and are influenced by complex supply/demand factors.
Related terms
Carbon Credit · Commodity Index · Crude Oil · Dutch Disease
From the DESK dictionary. For information only, not investment advice.
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DESK is a research tool and not investment advice. Page generated: 2026-10-12.