How to invest in commodities

There are several ways to invest in commodities, including:

  • Commodity futures: The Australian Securities Exchange (ASX) offers a range of commodity futures, including futures on energy, agricultural and metal commodities. You can trade futures through a brokerage account or through a futures trading platform.

  • Commodity ETFs: There are a number of commodity ETFs listed on the ASX that allow you to invest in a range of different commodities. You can buy and sell ETFs through a brokerage account or online trading platform.

  • Commodity mutual funds: There are a number of mutual funds that offer exposure to the commodity market, including both actively managed funds and index-tracking funds. You can invest in mutual funds through a financial adviser or brokerage account.

  • Physical commodities: Some investors may choose to invest in physical commodities, such as gold coins or barrels of oil, as a way to hedge against inflation or as a store of value. However, it is important to consider the costs and risks associated with storing and transporting physical commodities.

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