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How to make money in commodities
Understand physical commodity transactions.
Commodities are raw materials, agricultural products, petroleum products, and industrial and precious metals. Physical commodities are bought and sold in bulk for immediate delivery in specialized markets around the world.
These markets are known as the " spot " or " cash " market. The majority of participants in the spot market are producers, and users of the commodity, able to finance and store large amounts of a commodity such as a refinery buying crude oil or a flour miller buying wheat and corn.