A commodity market trades in raw or primary products rather than manufactured products where trading of various such as gold, silver copper and various base metals which come into hard commodities in this market people take commodity tips and trade also in soft commodities physical commodities trading constitutes of financial markets development in the modern era. The so-called financialization of the commodity market which occurred over past two decades when derivatives were underwritten on the commodities markets constituted significant part of investors portfolios held for the purpose of diversification.

There are types of commodities which can be classified such as metals such as gold, silver ,platinum,copper etc. then there Energy such as crude oil, natural gas, then agricultural commodities such as corn, soybeans, wheat, rice, cocoa, coffee, cotton and sugar. Pl\eople also invest in these commodities and gain good profits Volatile or bear markets typically find investors who are scared of investing their money in precious metals such as gold, which has historically been viewed as a reliable, dependable metal with good conveyable value.

Energy also plays an important in commodities global economic developments and reduced oil outputs from wells around the world leads to upward surges in oil prices, as investors weigh and assess limited oil supplies with ever-increasing energy demands.A better and popular way to invest in commodities is through a futures contract in which there is an agreement to buy or sell a commodity at a set price at a later time this contract is available for every type of commodity.

Author's Bio: 

I am from Moneymaker research and investment pvt ltd and i provide research based analysis on stocks and commodities please visit our site for free commodity tips and to avail a free trial.