Evaluating the Investment Potential of Gold and Oil as Physical Commodities

As global economic conditions fluctuate and the demand for sustainable investment options increases, investors are exploring physical commodities as a way to diversify portfolios and hedge against inflation. Two major physical commodities, gold and oil, exhibit unique characteristics in terms of investment potential and market behavior.

Discuss the advantages and disadvantages of investing in these physical commodities, particularly in the context of portfolio diversification and risk management. Furthermore, evaluate the impact of geopolitical events and supply chain disruptions on pricing and availability. Use specific examples to illustrate your arguments.