| It is a place where users can hedge to mitigate the risk in the physical market. Commodity exchanges are witnessing a lot of action since SEBI took charge. With the trading and other processes getting streamlined, these could be an alternate asset class that investors could consider in the future.
From my perspective, the commodity market is not for investors. It is a place where users such as farmers, importers, exporters, traders or companies can hedge to mitigate the risk that they face in the physical market. As far as investment in commodity market is concerned, yes, anyone can invest in commodity futures as the government does not state explicitly that you cannot trade in commodity futures without an exposure to the physical commodity..........................................Full Article: Source
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