Description
Commodities are often divided into three groups: energy (oil, gas, carbon emissions, heating oil...), agriculture (cocoa, coffee, sugar, ...) and metals, whether precious (gold, platinum, silver,...) or not (aluminum, nickel, copper, ...).
Each commodity has different properties and serves a wide range of purposes and industries.
Palladium, platinum and beryllium are catalysts used to make cars, since it reduces car emissions and can be used in other industrial applications.
Copper has traditionally served for the construction of pipelines, transmission of electrical wiring or for the manufacture of car radiators, although in recent times it has been replaced by plastic, aluminum or fiber optics.
Aluminum is one of the metals used for all kinds of industrial activities. Despite its abundancy, it is becoming a strategic resource increasing potential conflicts. Nickel, meanwhile is used for the manufacture of stainless steel and batteries for mobile phones.
The depletion of fossil fuels has led to the search of new energy sources. Currenlty, raw materials such as soybeans, wheat, corn or sugar are not only used as staple foods but also in the production of biofuels, ethanol or biodiesel, increasing supply pressure.
For the above reasons raw materials are considered a safe haven asset that can be used as a hedge against inflationary environments.
