How is commodity trading beneficial?
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Commodity trading proves beneficial in several ways. Firstly, traders benefit from the inflation of commodity prices. During inflation, the cost of commodities and raw materials increase substantially, which helps commodity traders book maximum profits. Traders can also hedge their commodity portfolios against a declining USD and save their assets. Furthermore, they can take advantage of various socio-economic and geopolitical events and uncertain global and economic periods, during which time the supply of goods is constricted. They can speculate or hedge their trades and book significant profits resulting from shortages.