A commodity is a raw material or primary agricultural product that can be bought and sold. Commodity items often will display little-changing market demand, which does not fluctuate with variations in price. In other words, it is a raw material or a product that people “need", not just want.
Let's look at a quick example: gasoline is an everyday commodity item that everyone has experienced. The price fluctuates daily, entirely outside of your control. Whether the price goes up or down, you'll continue to need gas for your car. Since most people don't have a great way to "stock up," you will end up buying it when your tank runs low no matter the cost that day.Continue Reading