Commodity diversify risk

The prime facet of commodity market is the existence of risk transferring mechanism principally provides insurance to the producers of the producers of the commodity against price spikes. They protect the participants against all uncertainties. Apart from this, the participants in the commodity supply value chain will be benefited from the transparent price information the instrument also encourages investor to invest in commodity market without holding the commodity physically but to enjoy the market benefits. Revitalize the commodity future market lifted ban in futures as of now the national level exchanges are providing future trading in over 50 commodities including agro commodity such as rice wheat maize sugar etc. Precious metal such as gold and silver and base metals such as copper tin etc option trading in commodity in available currently.
Future trading in commodity are gaining popularity among farmers traders and other intermediation in the commodity supply value chain. Historical direct investment in commodities has been a small element of the investor asset allocation however the investment in the commodity market has grown tremendously over the year due to innovation. Commodity investment is a unique option for the investors.