description of commodities

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In basic English, commodity markets deal with raw materials like grains, metals, and energy that are bought and sold. A commodity is a basic good used in commerce that is interchangeable with other commodities of the same type. The Wall Street Journal explains how these markets work in 2 minutes, introducing the concept of commodities and how they are traded on global exchanges. Investors often use commodities as a hedge against inflation or to diversify their portfolios.

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