What is the difference between a financial commodity and a financial asset?

What is the difference between a financial commodity and a financial asset Introduction: The Intricacies of Finance Hello everyone! Welcome to our video on the distinction between financial commodities and financial assets. In the vast realm of finance, these terms often surface, and it's essential to understand their unique characteristics and applications. So, let's dive in! Defining Financial Commodities: Tangible Value Financial commodities are physical goods or raw materials that hold economic value. Examples include precious metals like gold and silver, agricultural products like wheat and corn, or energy resources like oil and natural gas. These commodities are often traded on specialized exchanges, with their prices influenced by factors such as supply and demand dynamics, geopolitical events, and weather conditions. Investors and traders engage with financial commodities to diversify their portfolios, hedge against inflation, or speculate on price movements. Exploring Financial Assets: Broad Spectrum Financial assets, on the other hand, encompass a broader range. They can be tangible or intangible, representing ownership or a claim to value. Tangible financial assets include real estate properties or physical infrastructure, while intangible assets comprise stocks, bonds, or derivatives. Financial assets are typically traded in various markets, such as stock exchanges or over-the-counter platforms.