What is Commodity?
A definition of Commodity
“A commodity is a basic good or raw material in commerce that is interchangeable with other goods of the same type. Examples include grains, gold, and oil.”

Business Glossary > What is Commodity?
Examples of Commodity in a Sentence:
Oil is a highly traded commodity in global markets.
The prices of commodities like wheat can fluctuate significantly.
Many investors include commodities in their portfolios for diversification.
Why is Commodity Important in Business?
Commodities are crucial for the global economy as they serve as the building blocks for more complex goods and provide a way for investors to diversify their portfolios. Understanding commodity markets helps businesses manage risks associated with price fluctuations.
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Associated Terms
Here are some associated business terms and synonyms for “Commodity”:
- Raw Material
- Primary Product
- Basic Good
Goldman Sachs Commodity Trading
Goldman Sachs is known for its significant presence in the commodity trading market, dealing with various commodities like oil and precious metals. Their trading strategies influence market trends and investment decisions globally.
Final Notes on Commodity
Considering investments in commodities, it’s important to understand the market dynamics, including supply and demand fluctuations, geopolitical influences, and seasonal patterns. Assessing these factors can lead to better-informed investment decisions.
This has been a definition of Commodity meaning.
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