Mention commodity investing and chances are one would think of it as risky and complicated. However, unlike stock investing wherein a lot goes into researching on companies, sectors and financials, commodity investing is mostly based on demand and supply concerns. Retail investors with a well-diversified portfolio and stomach for risk can consider commodity investing as a hedging tool. From a portfolio point of view, historically, commodity pricing has been less volatile compared to equity and bonds, providing an efficient portfolio diversification option.
