Commodity
In the economy, physical assets that satisfy human needs are called a commodity. All economic goods have value. However, this value can be defined in different ways. While the production costs determine the value of some goods, the value it provides determines the value of some goods.
Goods and services around the world consist of the consumption of industrial input goods themselves or their derivatives, such as agricultural raw materials, fossil resources, and precious metals, registered as scarce resources. It is obtained that petroleum derivatives are used in many areas as well as silver as a raw material in a solar panel produced.
Apart from the derivatives of industrial raw materials, the situation is different in agricultural raw materials. The increasing world population also shows the volatility in agricultural commodity prices due to decreasing access to clean food and water with climate change.
In the World Bank's commodity statistics demonstrates that since 2000, commodity demand has increased significantly despite the global crises. In addition, it is possible to say that both commodity demand and commodity prices were affected by the regional and global economic recession between 2001 and 2008.
In the World Bank's commodity statistics demonstrates that since 2000, commodity demand has increased significantly despite the global crises. In addition, it is possible to say that both commodity demand and commodity prices were affected by the regional and global economic recession between 2001 and 2008.
Commodity Types
Gold
Gold, a precious metal that has been in the life of mankind since 5000 BC, has been considered sacred by many civilizations and has been regarded as the symbol of sovereignty. Gold, which has an atomic number of 79, has attracted the attention of humanity because of its attractive color, resistance to acids and rain, and being free in nature.
In recent history, gold has been preferred as a reserve as central banks and countries have wanted to attract gold to their homeland that they own but keep in different geographies. Today, we can say that the interest in gold is still not over.
Especially in the period after 2008, when the circulation of paper money increased, Central Banks became a net buyer, increased the gold reserves, and the global demand for gold also increased.
As gold is used today as a hedging tool for inflation, it also functions as a secure asset due to its scarce resources and precious metal.
As BalanceFX, we know the importance of gold. We added XAU/USD pair so that you can trade spot gold prices on our trading platforms.
Agricultural commodity
Agricultural commodity is the common name given to products such as wheat, soybean, corn, coffee, cocoa that we use as food or as raw material. The exchange of these products is as old as mankind history. Rice trade in China is considered to date back 6,000 years. After the invention of money, these products have been the subject of buying and selling, and have led the development of derivative contracts since the 17th century. In the mid-1800s, the purchase and sale of derivative products written on these commodity products in the USA accelerated, and the Chicago Trade Exchange (CBOT) was established in 1848. There are currently more than 10 commodity exchanges in the United States, and hundreds of commodity contracts are traded daily.
The fact that the agricultural commodity is in the portfolio or tradable on the platform increases the flexibility of the investors in the financial markets, maximizes the portfolio optimization and allows instant opportunities to take profit.
BalanceFX enables processing on corn and soybean derivatives with appropriate processing conditions, uninterrupted and fast order transmission.
Energy Products
Energy products are one of the most important parts of financial markets. Energy products consist of two main types of oil, natural gas, electricity, etc. Energy prices; act as a measure in terms of global risk, global growth and regional risks. For this reason, it has been observed that energy markets are in high correlation with other financial markets such as stock or bond markets.
On the other hand, considering that energy prices are the subject of supply-demand and often act together with the global economic situation, it is determined that trend movements in prices take longer and trend changes contain relatively less volatility.
BalanceFX offers investor trade on the most traded energy products such as Brent, WTI and Natural Gas. In these products, investors don’t have to pay a transportation cost, since it is an internal value. You can trade with up to 1: 500 leverage ratio for Brent, WTI and natural gas.