Commodity


A commodity is something that is relatively easily traded, that can be physically delivered, and that can be stored for a reasonable period of time. It is a characteristic of commodities that prices are determined on the basis of an active market, rather than by the supplier (or other seller) on a "cost-plus" basis. Examples of commodities include not only minerals and agricultural products such as iron ore, crude oil, ethanol, sugar, coffee, aluminium, rice, wheat, gold, diamonds, or silver, but also so-called "commoditised" products such as personal computers.