Hard Commodities

Hard commodities:

The commodities that are extracted through mining the earth are known as hard commodities. In general hard commodities are metals and fuels which are used as industrial materials

Initial products are refined into further commodities, as oil is refined into gasoline.

As hard commodities are easier to handle and used as industrial materials, most investors focus on these. Due to this reason, some farmers of soft commodities are transforming as the producers of ethanol-based energy products.

Some commodities like cotton are also considered as hard commodities even though these are agricultural products, because they don't rot quickly and because they are industrial materials rather than foodstuffs.