In the business and financial world, “commodities” are often things like oil, sugar, corn, and cotton.  They are things that are needed for many business but you can get them in nature.  Business use commodities to make more advanced products.  Investors can invest in commodities if they think there will be a large demand (many people want to buy them) for them.  For example, because of the growth of China and India, many investors believe that commodities are a good investment because these fast crowing countries will need a lot of commodities to fuel their economy.  This means high demand and in turn higher commodity prices.

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