What’s Commodity? And why it affects you & me?
When we say commodity what we mean is the basic goods or raw material that can be consumed and traded by individuals and institutions. Commodities form the foundational structure for far more complex goods and services that we use on a daily basis. Imagine trying to get your hands on crude oil instead of unleaded petrol.Standardization and interchangeability are two of the most pivotal virtues which attribute fungible features to commodities . Fungibility leads to uniformity of prices of commodities at any place in the world. However, factors like transportation and taxes affect the prices of commodities.
Role of commodities in trading
Predominantly, commodities are extracted, produced and traded in massive quantities to support efficient consumptions in global markets. These markets provide a crystal clear way for commodity producers, consumers and financial traders to transact business. Examples of commodities include Rubber, Iron etc.
Commodities can usually divided into four categories:
- Agricultural: This category involves food crops (e.g., corn, cotton and soybeans), livestock (e.g., cattle, hogs and pork bellies) and industrial crops (e.g., lumber, rubber and wool)
- Energy: This comprises of petroleum products such as crude oil and gasoline, natural gas, heating oil, coal, uranium (used to produce nuclear energy), ethanol (used as a gasoline additive) and electricity
- Metals: This category includes two sub-categories a) Precious Metals b) Base metals. Let’s see which falls under which category, Precious metals (e.g., gold, silver, platinum and palladium) and base metals (e.g., aluminum, nickel, steel, iron ore, tin and zinc)
- Environmental: This bracket includes products such as carbon emissions, renewable energy certificates and white certificates to name a few. This is purely based on the environmental aspects.
How Does NewzoneEX fit in the commodity picture?
Yes, you should get to know us first! We are NewzoneEX.
New Zone Intertrade FZE is into trading of Ferrous and Non-ferrous metals. The inception of the organisation was in the year 2008.The company’s net worth stands $70 million with a revenue of over $ 2 billion as on December 31, 2017. Headquartered in Dubai, NewzoneEX has two major subsidiaries in Hong Kong and Singapore, and they are Mine Craft Limited and New Alloys Trading Pte Ltd espectively.
NewzoneEX ICO for the creation of a Trading Platform
After successful years in physical trading, We have an ambitious plan to create a global marketplace in Commodities and to do this we need to create a unified blockchain based trading platform. Well, that’s why we wish to develop a trading platform which helps everyone trade commodities with cryptocurrencies.
We will be raising funds to develop such a platform to create seamless trading of commodities. NewzoneEX will be offering out NZ tokens in the ICO period. So, be a part of this journey of creating something great and help us develop a reliable trading platform.