Why You Shouldn’t Ignore Investing in Commodities

Investors can help reduce risk, hedge against inflation and diversify their portfolio by investing in commodities, such as gold, silver and copper.

Gold, silver and copper bars all lined up.
(Image credit: Getty Images)

Investors are regularly searching for ways to maximize returns while minimizing risk. One often overlooked avenue for achieving this balance is investing in commodities. In my opinion, maintaining a certain percentage of a portfolio in commodities can increase diversification and reduce the risk of the overall portfolio. Let's explore the reasons why investing in commodities should not be ignored.

What are commodities?

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Peter J. Klein, CFA®, CAP®, CSRIC®, CRPS®
CIO and Founder, ALINE Wealth

Peter J. Klein, CFA®, CAP®, CSRIC®, CRPS®, is the Chief Investment Officer and Founder of ALINE Wealth, a wealth management firm that specializes in providing clients with financial planning advice for every stage of their lives. Along with Peter’s deep financial wisdom, he adds considerable acumen in philanthropy, helping clients navigate family trusts, institutions, and nonprofits.