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Commodities and Gold

Although it may sound frightening and risky to many investors, if handled correctly, commodities including gold can be an integral piece of an investor's portfolio. What exactly are commodities? Commodities are any mass goods traded on an exchange or in a cash market including cocoa, coffee, eggs, lumber, orange juice, soybeans, and sugar, just to name a few. Industrial metals are also included, with gold, copper, aluminum, zinc, nickel, silver, and lead ranking among the most popular industrial metals holdings. They are traded in order to profit from the fluctuation in price from these basic goods. These potential profits result from the buying or selling of futures contracts in a particular good. A commodities futures contract is an obli....


  

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