Commodities & Futures

Metals, energy, crops and how futures work.

1. Precious and Industrial Metals — Gold and silver are prized as stores of value; copper and other industrial metals follow the economy. Here is what drives each group and how metals have moved in our recent price data.
2. Oil, Gas and Energy — Energy prices touch everything from gasoline to airline tickets to inflation reports. Here is what drives oil and natural gas, how volatile they are and how energy stocks relate to them.
3. Agricultural Commodities — Corn, wheat, soybeans, coffee, cocoa and cattle trade on futures markets just like oil. Weather, harvests and trade policy drive their prices. Here is how agricultural markets work.
4. How Futures Contracts Work — A futures contract is an agreement to buy or sell a set amount of something at a set price on a future date. Futures are how most commodities trade. Here is how they work, including margin and daily settlement.
5. Contango & Backwardation — Futures for different months trade at different prices. Whether later months cost more or less than nearer ones can quietly add to or subtract from a commodity fund’s returns. Here is how it works.
6. Commodity ETFs — Commodity funds make it easy to own gold, oil or a basket of raw materials. But how a fund holds its exposure changes its returns, risks and taxes. Here is how to tell them apart.