We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What is a Cash Commodity?

Malcolm Tatum
By
Updated Feb 04, 2024
Our promise to you
WiseGeek is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At WiseGeek, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

Different from a futures commodity, a cash commodity is a physical asset that is being purchased or sold, with payment rendered immediately. Ownership of a cash commodity is transferred upon receipt of the payment. In some markets, a cash commodity is referred to as actuals.

The underlying premise of the cash commodity is not the same as a futures commodity. With futures, the goods or securities are purchased or sold with the stipulation of future delivery. This usually works out fine for the buyer and seller, as the seller does recognize immediate benefit from the sale, and the buyer is free to put the security or asset up for immediate sale without having to wait for actual possession to take place. Often, investors engage in the execution of a futures contract with the intent of making a quick profit from turning over the asset.

With a cash commodity, there is no deferred period before delivery of the good or security. Possession is often held for a period of time before another sale is engaged. In fact, some types of cash commodities are intended for long term ownership. Precious metals such as gold or silver are examples of a cash commodity that the investor is likely to retain for an extended period of time.

In other cases, the cash commodity may be sold in the short term, depending on market conditions. This is particularly true with any cash commodity that may have a relatively short shelf life. Products such as soybeans or corn are examples of a cash commodity that is acquired and then sold to an appropriate investor within a short period of time.

As with any type of investment opportunity, dealing with a cash commodity requires careful investigation about the chances for realizing a profit from the venture. When selling a cash commodity, the goal is to hold onto the commodity until market conditions are right for selling at a good price. For buyers, the idea is to acquire the cash commodity at a price that is competitive and will ultimately increase enough in value to make the resale worth the time and effort involved with making the original purchase.

WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Malcolm Tatum
By Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing to become a full-time freelance writer. He has contributed articles to a variety of print and online publications, including WiseGeek, and his work has also been featured in poetry collections, devotional anthologies, and newspapers. When not writing, Malcolm enjoys collecting vinyl records, following minor league baseball, and cycling.
Discussion Comments
Malcolm Tatum
Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing...
Learn more
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.