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Commodities

Related terms: commodities, asset allocation, diversification, investment strategy, risk management

What are commodities

Commodities are basic goods used in commerce that are interchangeable with other goods of the same type. They include natural resources and agricultural products such as oil, gold, and wheat. Commodities are traded on exchanges and are essential for the production of other goods and services.

Role of commodities in family offices

Family offices often invest in commodities as part of their diversification strategy. Commodities can act as a hedge against inflation and currency fluctuations, providing a balance to more traditional investments like stocks and bonds. This asset class can offer unique opportunities for growth and risk management within a family’s investment portfolio.