How to Invest in Commodities?
There are several ways Australians can gain exposure to commodity markets, without needing to buy physical gold or barrels of oil. The simplest method is through exchange-traded funds (ETFs) that track the price of specific commodities or a basket of them. Investors could also buy shares in mining and resource companies which often rise and fall with commodity prices.
More advanced investors might trade futures contracts, which allow them to speculate on price changes directly, though this carries higher risk. Others prefer diversified resource funds, which provide broad exposure across multiple commodities. As with any investment, Understanding the risk such as price volatility and currency fluctuations is key to managing exposure effectively.