Commodities, a key category of real assets, primarily include natural resources such as agricultural products, oil, natural gas, and various metals, both precious and industrial.
These assets are traditionally valued as a hedge against inflation because their prices are not directly tied to public equity markets. Instead, the value of commodities is driven by supply and demand dynamics; as demand increases, so do prices, potentially leading to significant profits for investors. The trading of commodities is a longstanding practice, with origins tracing back thousands of years. Notable historical examples include the early formal commodities exchanges in Amsterdam, Netherlands, and Osaka, Japan during the 16th and 17th centuries, respectively. The practice was further institutionalized with the establishment of the Chicago Board of Trade in the mid-19th century, which pioneered commodity futures trading.
Catch Up With Our Insights & Conversations
Imagine being able to invest in the next SpaceX, OpenAI, or other groundbreaking companies before they become household names. What if you could...
Welcome to the future of investing—a future where opportunities in private markets are no longer reserved for the elite few but are accessible...
At Friends Wealth Management, we pride ourselves on providing unparalleled access to the world of private markets, particularly through innovative investment vehicles like...