Investment in Commodities in 2026

Investment

The aim of today’s session is to familiarise learners with essential investment terminology, analyse investment behaviours across Europe and India, and gain insight into how individuals seek to expand their wealth. Learners will engage in idea sharing and strengthen their financial lexicon.

Warm up questions

What does the word investment mean to you?
Do you save money? Why or why not?
Is it better to save money or invest money? Why?
Where do people usually like to invest in France?
If you get 1,000 € today, what will you do with it?
How do European people think about investing in commodities? Which statement is True?

👉Europeans are careful investors

👉Gold is popular and trusted

👉Commodities are not the main investment

👉Safety and the future are important

❓What are commodities? Are they a good Investment?

A commodity is a basic, standardized good that is interchangeable with the same good from another producer.

In simple terms -

A Commodity is something:

* You can buy and sell

* That is mostly the same everywhere

* Whose price is set by global supply and demand, not by brand

Examples of commodities- Gold, silver, crude oil, natural gas, Aluminum,and Copper.

👉I would like to share how Indians people think about investing in Gold?

Gold is viewed as a future hedge.

As I grew up in India, I saw my grandparents and parents invest a lot in commodities like gold, especially for weddings and festivals. They invest their money to give gold as a gift to their children at weddings. Buying gold in India is part of the culture, and this tradition is still going on. Many Indian people trust that gold is a safe and less volatile investment for the long term. After a strong performance in 2025, when gold prices increased by 76.5%, many people find it hard to believe that gold is not a good investment. Even though many financial advisors say that gold is not always a good investment, people still believe it is a great way to invest their money.

👉Are there similar cultural beliefs in your country? If yes, I would love to hear your perspective.

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Reading Comprehension

Recently, I read an interesting article in The Economic Times about investing in gold and silver in 2026. The article explains that both metals performed very well in 2025. Silver was the stronger performer, rising by nearly 170%, while gold increased by about 76%. These gains were caused by global economic uncertainty, changes in monetary policy, and strong demand.

Experts say that gold and silver have different roles in an investment portfolio. Gold is seen as a safe and defensive investment. It helps protect against inflation, currency changes, and political risk, and it is less volatile. Because of this, gold is suitable for long-term and conservative investors.

Silver, however, has higher growth potential because it is widely used in industries such as electronics, solar energy, and manufacturing. At the same time, silver is more volatile and more sensitive to economic changes.

Experts do not suggest choosing only one metal. Instead, they recommend a balanced approach, such as investing 60% in gold and 40% in silver. This strategy allows investors to benefit from gold’s stability and silver’s growth potential. Overall, diversification and risk tolerance are important when investing in gold and silver in 2026.

If you are interested in reading click on this link below

The Economic Times

Vocabulary

Financial Terminology with English and French translation

1.Allocation/répartition – how investments are divided or

distributed in a portfolio (e.g., how much to put in gold vs silver). 2.Volatility/volatilité – the degree to which a price goes up and down; higher volatility means more unpredictable changes. 3.Macroeconomic/macroéconomique – big picture economic factors that affect markets, like inflation or interest rates.

4.Monetary policy/politique monétaire – actions by a central bank

(like the Fed) to control money supply and interest rates.

5.Safe-haven/ valeur refuge – an asset investors buy to protect their money during uncertainty (like gold).
6.Real yields/rendements réels – returns on investments after adjusting for inflation.
7.Defensive asset/actif défensif – an investment (like gold) that’s expected to hold value when markets are weak.
8.Upside potential/potentiel de hausse – the possibility that an asset’s price might increase.
9.Tactical/tactique – used strategically for short-term advantage rather than long-term hold.
10.Duality/dualité – having two different roles or characteristics (e.g., silver is both an industrial and investment metal).
11.Portfolio protection – methods to reduce risk of losing money in a mix of investments.
12.Speculative flows/flux spéculatifs – investments based on predictions of price moves rather than fundamentals.
13.Growth-linked exposure – investment tied to how fast the economy or a sector grows.
14.Bull market/marché haussier – when prices are generally rising.
15.Drawdown risk/risque de perte maximale – the possibility of losing value from a peak price level.
16.ETFs (Exchange-Traded Funds)/FNB (fonds négociés en bourse) – financial products that let you invest in many assets (like silver) at once.
17.Green transition/transition écologique – shift to clean energy/technology sectors that increase demand for metals like silver.

👉Reading Activity

Today you will read a short story about gold. You will learn how people discovered gold, how it became valuable, and why it is important even today.

After reading, you will answer some comprehension questions and also practice speaking in the past tense by telling what happened in the story.

The Story of How Gold Became Valuable

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A very long time ago, thousands of years in the past, people lived in small villages near rivers and mountains. One day, a group of people found a shiny yellow metal in the sand. It was bright, beautiful, and different from anything they had ever seen. This metal was gold.

They took it back to their village and showed it to others. Everyone loved how it shined in the sunlight. People began to make small decorations from it—necklaces, rings, and bracelets. The gold did not break, rust, or lose color, so people believed it was special.

As time passed, travelers and traders visited the village. When they saw the gold jewelry, they wanted it too. They offered food, animals, and other goods in exchange. The villagers realized that gold could be used for trade. Slowly, gold became a symbol of wealth and power.

Years turned into centuries. Gold spread across the world. Ancient Egyptians used gold to make crowns for their kings. In India, gold became an important part of festivals and weddings. In China, people believed gold brought good luck and success. Because so many different cultures loved gold, its value became global.

Later, kingdoms and governments began to make gold coins. These coins were easy to carry and trusted by everyone. People believed that if you had gold, you had security. Even during wars, disasters, and economic problems, gold kept its value.

In modern times, banks began keeping gold in large vaults. They used it to support their currencies and protect their money systems. Today, investors around the world still buy gold when they are worried about the future. They believe gold is safe and will help protect their wealth.And that is how a shiny yellow metal found in the sand became one of the most valuable and trusted materials in the world.

Comprehension Questions

Why did people think gold was special in the beginning?
What did the villagers use gold for?
How did gold spread across the world?
Why did different cultures value gold?
Why do people still invest in gold today?

If you are interested in the history of Gold standard and impact on US dollar. Checkout this amazing article on Investopedia by Nick Lioudis

Listening Practice

Let’s find out why Warren Buffett avoids trading commodities.

I found a YouTuber named Ralph Khattar who posted a video titled Why Warren Buffett Avoids Trading Commodities. The video explains Warren Buffett’s investment philosophy and why commodities like gold and oil do not fit his approach.

👉 Watch here: VIDEO

Fill in the blanks based on past simple

and vocabulary

👉Complete the sentences with the past simple

form of the verbs in brackets.

The price of gold ______ (rise) suddenly in 2025.
Investors ______ (buy) more silver because it was cheaper.
My grandparents ______ (believe) that gold was the safest investment.
The market ______ (change) quickly due to global events.
Many people ______ (not understand) how volatile commodities can be.
The company ______ (invest) in oil and gas last year.

👉Choose the correct word to complete the

sentences.

(investment – return – risk – asset – commodity)

Gold is a popular ______ that many people buy and sell.
When you put money in the stock market, you

hope to get a good ______ later.

Buying a house is an ______ because it is something valuable that you own.
Every ______ has some level of ______, because you might lose money.
Oil is a natural ______ that countries trade

around the world.

Answer key

👍Rose, bought , believed, changed, did not understand

invested

👍Commodity, return ,asset, investment, risk, commodity

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I hope this session of Investing in Commodities has been helpful. If you have any questions, please feel free to ask them in the comment section below.

If you want to practice more topics you can click below👇

👉Culture connect

👉Meetings

👉Writing Business Emails

Enjoy learning !!!

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