What are the advantages of investing in commodity market


A commodity market is a place where one can buy, sell or trade various commodities at current or future date. Some major advantages of investing in commodity market as follows
Liquidity
Commodity Options would add to enhanced liquidity in the market, lower impact cost, improve price discovery, lower volatility along with increase market stability, and allow quicker information reflection in prices. Also, it would lead to reduction in ignorance about commodities trading, as farmers, hedgers & investors, will understand its benefits more easily.
Counter party risk
Another major advantage to commodity traders and investors is the absence of counter party risk. With the Clearing house standing as a legal counter party between the buyer and the seller, it ensures the evasion of the risk factor as the clearing house becomes buyer to every seller and seller to every buyer.
Diversification Stratergy
While commodity funds can play a role in a diversification strategy, the funds themselves are considered non-diversified as they invest a significant portion of their assets in fewer individual securities that are generally concentrated in one or two industries. As a result, changes in the market value of a single investment could cause greater fluctuations in share price than would occur in a more diversified fund.
If you want to generate good returns on your investment by trading commodities, a more suitable option would be to opt for a Commodities Trading Account with a nationalized Stock Broker & start trading in Base metal, Bullion & Energy Segment which are traded on global exchanges.There are various advisory services such as Bazaar trading, 100 MCXTips, KheloMCX . Our fundamental and technical analysis team provide best commodity tip in India.
(Source : https://www.quora.com/What-are-the-advantages-of-investing-in-commodity-market)

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