Financial Success Guide

What are Commodities?

Lesson 27 Module 6

Commodities

Note: The typical rates of return quoted above are average rates of return over a 8-10 year investment period.

Commodities

  1. Commodities include Gold, Silver, Food items, and other things like petroleum products, that are used everyday.
  2. Commodity investments are not capital protected.
  3. An investment in commodities such as Gold, and Silver cannot provide an income, they can only provide capital gains or loss.
  4. The value of commodities is greatly affected by economic conditions, demand and supply, and political instability.
  5. People mostly invest in Gold and Silver as an Emergency Fund.
  6. Managing and securing commodity investments like Gold and Silver physically is a headache and expensive.
Remember - Commodities like Gold and Silver, are mainly used a hedge against inflation - meaning, their value goes up as value of currency falls.
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