Finance Glossary
Commodities
A raw material is a basic economic good, generally a resource, used in trade, and interchangeable with other raw materials of the same type.
Raw materials are most often used as inputs in the production of other goods or services. They are generally classified into four main categories: metals, energy, livestock and meat, and agriculture.
For investors, raw materials can provide an important source of diversification for their portfolios beyond traditional securities.