Commodity trading is not for everyone. How and if you should invest in commodities depends on your risk appetite, knowledge and investment strategy.  Consider the benefits and drawbacks of trading commodities below:     Pros of Commodity Trading A hedge against inflation A way to diversify an investment portfolio Commodities are a very liquid asset A variety of ways to invest: futures contracts, options, ETFs and stocks     Cons of Commodity Trading Some commodities are extremely volatile  It can be a confusing market Exposure to economic and political fluctuations