Articles

Is your portfolio focused only on shares and bonds? If yes, it’s time to diversify your portfolio by adding commodities. Commodities is a separate asset class. Investing in commodities like gold offers a safer edge during economic uncertainties and protects against inflation.

Indian commodity derivatives markets have played a pivotal role economic development in terms of price discovery and price risk management in the ecosystem. 

A gold ETF is a commodity exchange-traded fund that can be used to gain exposure to the price increase in the gold. Gold ETFs trade on a stock exchange just like a normal stock or equity but derives its value from holding ‘underlying assets’ that is Gold.

The global financial market has become one of the important barometers for growth of the economies. Each asset classes are equally importance in growth of the global economies. Major asset classes include equities, bonds, currencies and commodities have their distinct contribution to the world economy.

Commodities refer to essential items that are exchangeable and can be bought and sold. Be it food, metals, energy, or resources – commodities are fundamental for life, and investors can trade them on commodity exchanges similar to shares and bonds for profit.