Risk and Return in Commodities Investments

Commodities have historically served as a hedge against inflation and as a component of portfolio diversification. Investors are aware that investing in commodities involves unique risks and returns profiles. This question requires you to analyze the risk-return characteristics of commodities investments.

Describe the primary risks associated with investing in commodities and how these risks can impact the expected returns on commodity investments. Additionally, explain how these characteristics differentiate commodities from traditional asset classes such as stocks and bonds.