The commodity market is the base of the world trading system. A commodity exchange is an exchange where various commodities are sold. Commodities include agricultural products, raw materials and products which are used as “building blocks” for more complex goods or for services.
The main feature which makes commodities different from other products is that they can be interchangeable with other materials of the same type. That’s why commodities are mined, produced and traded a lot to maintain the global commodity market.
Commodities can generally be divided into 4 main categories:
- Agricultural which includes food or industrial crops
- Energy: oil, gas products, electricity
- Metals: gold, diamonds, silver, iron, nickel and etc
- Environmental: carbon emissions, renewable energy
The largest commodity markets:
1. Chicago Mercantile Exchange (since 1898)
2. Chicago Board of Trade
3. New York Mercantile Exchange
4. Intercontinental Exchange
5. London Metals Exchange
6. Australian Securities Exchange
7. Tokyo Commodity Exchange
The main factors that drives the prices:
3. US dollar
5. Weather (really plays an important role in the commodity prices, e.g. because of natural disasters)
Now let’s clear up if cryptocurrency is really commodities.
Cryptocurrencies are a unique sort of asset and cannot be easily called a currency as the main feature of a currency is a regulation by a government and centralization. That’s why it’s better to refer cryptocurrency to a real-world commodities, like gold or diamonds, as they are also mined, and its price is determined by market factors.
Diamond Open Market is a decentralized commodity exchange to buy, sell and trade any types of diamonds. Your own fair pricing, zero fees, physical delivery and other features.