Risk and Return in Commodity Investments

As an investment manager with a focus on commodity markets, you are tasked with evaluating the risk and return profile of investing in commodities compared to traditional asset classes like equities and fixed income.

In your analysis, consider the factors that contribute to the risk and return characteristics of commodities, such as supply and demand dynamics, geopolitical risks, and market structure. Additionally, discuss how macroeconomic variables, such as inflation and interest rates, might impact commodity investments.

Support your answer with relevant data or examples, and provide a conclusion that synthesizes your findings.