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CFA Level 3
Alternative Investments

Investing in Physical Commodities

Very Easy Commodities Investment Physical Commodities

Physical commodities, such as gold, oil, and agricultural products, play a significant role in diversifying investment portfolios. These tangible assets are influenced by various factors, including supply and demand dynamics, geopolitical risks, and macroeconomic trends.

Discuss the benefits and risks associated with investing in physical commodities. In your response, provide examples of at least two different types of physical commodities and their unique characteristics that can impact their investment potential.

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