Commodities
Commodities are goods that have demand and are supplied without qualitative differentiation across the market. It is the same product regardless of who produces it, such as petroleum, note book, or milk. In other words, copper is copper. Copper prices are universal and up and down every day, based on global supply and demand. On the contrary, television has many levels of quality. Better televisions will cost much higher. One of the characteristics of commodities is its price determined as a whole market function. Proven physical commodities have marketed securities and market derivatives marketed actively. Generally, these are the basic sources and agricultural products such as tin ore, crude oil, coal, ethanol, salt, sugar, coffee beans, soybeans, aluminum, rice, wheat, gold, and silver. Commodities occur when the goods or services markets lose their differentiation across supply bases, often due to the diffusion of intellectual capital required to acquire and produce products efficiently.