Best 5 Commodities to Trade in India in 2023

2023 has offered the market plenty of opportunities in commodity trading. The previous three  years shook the markets and affected every sector. Though commodities were one of them, they could keep up the growth. But, continuous observations and analysis of the local and global markets are inevitable.

Events happening in different parts of the world can impact commodity market prices. And the government’s response also has a role to play. For example, the Ukraine-Russia war caused a price increase in petroleum and food.

Such situations affect your trading decisions and results. Hence we have come up with the best five commodities to trade in India in 2023. Read on

Top 5 Items to Consider for Commodity Trading in India in 2023

• Gold

As rare as it is, the popularity of gold is soaring day by day. We, humans love to own and wear, but it is also used in industries like jewellery, dentistry, and medicine. Since time immemorial, gold has been a high-value commodity. The governments around the world also consider it a financial asset.

India is the second largest consumer of gold jewellery in the world after China. The consumption is on a steep rise since 2021. In 2022, it was 774.1 tonnes, and it has been predicted that the consumption of gold will be somewhat in between 750 to 800 tonnes.

There is a reason for the gold to be in such huge demand in India. People consider it a protective commodity against economic downtrends and inflexion, as its price goes up when the value of the Indian rupee goes down against the dollar.

Gold is available in different sizes, i.e., Gold Mini, Gold Guinea, and Gold Petal. Thus it becomes easy to buy and sell. Hence it is one of the best options for online commodity trading in India in 2023.

• Silver:

Silver is another commodity that is very popular in India. It is helpful in many industries, like jewellery, electronics, dentistry, and medicine. Silver, given its diverse applications, has always been in demand globally.

The global supply of this metal was 26,000 metric tonnes in 2022, and it is expected to rise to 29,908 metric tonnes in 2023. The price of silver in India in 2023 is around Rs. 78,100 per kg.

These numbers suggest the importance of silver as a commodity in the market. They also put this metal on the commodity trading list in 2022 in the Indian market.

• Crude Oil:

The third sought after commodity in India is crude oil. It’s not only used as a source of energy, but also in petrochemicals, production of textiles, production of fertilizers, production of steel, lubricants, and plastics.

The beginning of the pandemic in 2020 caused a steep decrease in the use of petroleum. But then vaccinations came, and their distribution turned the tables. The restart of world trade and cargo movements added fuel to the fire. Since 2021 its demand has only gone up.

India consumed 222.30 million tonnes of petroleum products, and it is estimated to rise to 233.81 million tonnes in 2023-2024. Its commodity market prices price is 73.87 USD per barrel or about Rs. 6000.

The demand for crude oil is high and will increase in the future in India. And the market will see ups and downs within the price range mentioned above. That means online commodity trading in crude oil in India can render good returns in 2023.

• Natural Gas:

Natural gas is a form of gas made from fossils found deep under the earth. CNG, a compressed natural gas, is a cheaper, safer, greener energy source. Many industries use CNG for various purposes and are in high demand. This demand will further increase as the Indian government recommends it to the power sector.

CNG produces 80% lower carbon monoxide and costs less when compared to petrol and diesel. Hence it is not only affordable for the consumers but also good for the environment.

There are 4500 CNG filling stations in the country as of 2022. Further, the petroleum and gas ministry has announced the setting up of 3500 stations by 2024. It will lead to more consumption and demand. And natural gas will become a more profitable commodity.Natural gas is a form of gas made from fossils found deep under the earth. CNG, a compressed natural gas, is a cheaper, safer, greener energy source. Many industries use CNG for various purposes and are in high demand. This demand will further increase as the Indian government recommends it to the power sector.

CNG produces 80% lower carbon monoxide and costs less when compared to petrol and diesel. Hence it is not only affordable for the consumers but also good for the environment.

There are around 5000 CNG filling stations in India in 2023, and it is expected to rise to 8000 by 2024. It will lead to more consumption and demand. And natural gas will become a more profitable commodity.

• Copper: 

Copper is an optimal conductor of heat and electricity. Also it is resistant to corrosion and the effects of the weather. That is why it is used in numerous industrial and manufacturing applications such as; electrical wires, piping, roof tiles, industrial machinery, and also in making alloys.

Globally, it is one of the most used metals. Due to its high demand in the industry, its price is affected by the health of the local and global economy.

Conclusion

2023 has experienced a jump in business and trade activities from the beginning. And some commodities have caught the eyes of traders globally. The top five are gold, silver, crude oil, natural gas and copper. We hope you will find this article helpful for online commodity trading in India.

Visit the Piramal Finance website for more about trading, investment, and finance. We take care to suggest what’s financially best for you and help take care of your loan requirements if any.