The basic materials that we use on a daily basis, collectively make up the term 'commodities'. Therefore, investing in commodities is essential. But let us talk about metals here, and the various methods of commodity investing. Often on gold and silver investments, volatile returns take place. These volatile returns can either turn out good, or they can even turn out bad.
The market as a whole can become affected by the investments made in metals. The deal is that the higher the prices of metals in the market, the performance of mining companies also gets higher. Hence, the relationship is directly proportional. The rising commodity prices equal to increased earnings increased dividends and of course, there is growth in equity as well.
The infographic below shows how commodity investment and the main metal market are related to one another, as well as how and what the respective exploring and mining companies make of it.
Infographic by: VisualCapitalist