Commodities play a unique role in investment portfolios. They are often used as hedges against inflation and geopolitical risks. During periods of rising inflation, the prices of commodities like gold and oil may increase, helping to preserve the real value of an investment portfolio. Additionally, commodities can serve as a hedge against geopolitical instability, as disruptions in the supply of key commodities can lead to price spikes.

In summary, commodities represent physical goods that can be invested in directly, through futures contracts, or via commodity-focused funds like ETFs. They offer a distinctive investment opportunity with potential benefits as hedges against inflation and geopolitical risks. However, each investment method comes with its own set of considerations, and investors should carefully assess their goals and risk tolerance when including commodities in their portfolios.