Why is it risky to invest in a commodity? a commodity has little or no value as a long-term investment. commodity stocks cannot be traded after you purchase them. the commodity's price might drop significantly very quickly. the investment will tie up your money for more than one year.

It is risky to invest in a commodity because: The commodity's price might drop significantly very quicklly
Commodity products are circulated really quickly. This will affect the rarity of the product in the markets. If the rarity is high, the price will increase and vice versa. This exact condition makes the price for that commodity also fluctuated really quickly.

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