What are commodities? It seems like a simple question. Ask someone on the street and they'll probably say "oil" or maybe "gold."
Those are good examples, but they don't tell you what really makes a commodity a commodity. And understanding that is the first step to becoming a better commodities investor.
Now it's time for the big question: Why invest in commodities at all?
The short answer is that, based on historical data, adding commodities exposure will increase your returns while lowering your risk.
Why? Well, to understand that, we first have to talk about the single most important topic in investing: asset allocation.
All commodities are fungible, but not all commodities are created the same.
Generally speaking, investors break commodities down into two categories: "soft" and "hard" commodities.
With record inventories and record harvests, it's a tough time to be in soybeans right now. But are farmers making the right bets? 
This Barclays Wealth investment strategist explains why now is the right time to short the yellow metal. 
We run the latest numbers on the gold vs. gold stocks question. 
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