Commodities play a crucial role in the global economy, categorized into hard commodities like oil and gold, and soft commodities such as wheat and livestock. Investors can gain exposure through direct trading, spread betting, CFDs, or by using Exchange Traded Commodities (ETCs) and Exchange Traded Funds (ETFs), which track commodity performance without direct ownership. While ETCs focus on individual commodities and may carry counterparty risks, ETFs offer diversification and liquidity, often tracking futures contracts rather than physical assets.
