What are commodities? It seems like a simple question. Ask someone on the street and they'll probably say "oil" or maybe "gold."
Those are good examples, but they don't tell you what really makes a commodity a commodity. And understanding that is the first step to becoming a better commodities investor.
Now it's time for the big question: Why invest in commodities at all?
The short answer is that, based on historical data, adding commodities exposure will increase your returns while lowering your risk.
Why? Well, to understand that, we first have to talk about the single most important topic in investing: asset allocation.
All commodities are fungible, but not all commodities are created the same.
Generally speaking, investors break commodities down into two categories: "soft" and "hard" commodities.
The USDA released its 
While it's unlikely the argument will ever be won, the evidence just isn't on the side of the gold-futures manipulation theorists.
The company behind the hugely popular US Oil Fund (USO) and US Natural Gas Fund (UNG) files for an inverse oil ETF. Matt Hougan and Dave Nadig explain how this is fundamentally a different animal than the inverse and leveraged funds that have made so many unhappy headlines.
Loading data ...