Prospective traders had far fewer options to invest in commodities before online trading took the stage. Today, you can speculate on commodity price movements with or without actually owning the asset.
Common bullion forms include coins and bars, also called ingots. Prices are defined by current metal values and the rarity of the bullion item. This means that a bullion coin’s face value may be significantly less than its market value.
Perhaps the most indirect way to trade commodities is through company stocks. For example, there are dozens of mining companies that specialize in industrial metals. By investing in these companies, you’re investing in the commodities they sell or produce.
The majority of popular commodities are accessible on national and international exchanges. Typically, futures contracts are available precious metals, common metals, soft agricultural commodities, and energy commodities.