Commodity: A commodity is a basic physical asset that is used to produce goods and services. Examples of commodities include metals, such as gold and silver, agricultural products like wheat and corn, energy sources like oil and natural gas, and various other raw materials. Investing in commodities entails speculating on the price movements of these underlying assets. The market for commodities is highly volatile and subject to a number of factors, so it can be a risky yet potentially rewarding investment option.