There are a few ways to profit from rising commodities. One of them is to invest in the commodities them self. A big advantage is that your earnings are directly related to the commodity. Because commodities can be very volatile the earnings or losses can be big.
You can buy the actual commodity, like a bar of gold. But this is not very effective. It is hard and expansive to trade this way. You have to buy a lot of different commodities in order to diversify.
It is also possible to buy financial products which directly invest in commodities. Examples are funds, etf's, options and futures. This way of investing also makes it easy to diversify. It is possible to buy a basket of different commodities. An example is the rogers index. Diversification is smart because commodities can be volatile.
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