The Dow Jones AIG Commodity Index monitors 19 different commodity future contracts and from Jan 2001 to first quarter 2011 the AIG Index outperformed the S&P 500 by returning 6.38% compared to 1.71% (a difference of over 370%)

Unlike financial assets such as stocks and bonds, commodities are a tangible asset and react differently to changing global markets and economic fundamentals.

Commodities offer tremendous growth potential in markets that are not directly interrelated to stocks, bonds or real estate.

Commodities like crude oil, corn, soybeans, copper, cattle etc. are goods almost everyone in the world uses on a daily basis and how they respond to world events can offer valuable portfolio benefits - especially when combined with more traditional financial asset classes like stocks and bonds.

Diversification, or "don't put all your eggs in one basket," isn't about the number of investments in a portfolio but rather about the relationships among those investments. In a world of increasing inflationary pressure and a falling dollar, not putting "all your eggs in one basket" makes more sense than ever before.

Commodities are recognized as one of the few asset classes that tend to benefit from rising inflation.

During unstable economic times commodity prices often rise in value.

Commodities offer a better hedge against inflation than stocks and bonds.

With approximately 55 'major markets', commodities can be much easier and less time-consuming to follow then stocks or mutual funds which number in the thousands.

Commodities allow investors to directly invest in the 'end product' and not into stock shares or company management.

Through the futures and options markets, commodities traders have the ability to maximize the trading power of their investment dollar. The leverage in commodities offers traders an opportunity to control a larger contract position for a fraction of the face value of the underlying commodity.

The high degree of leverage can result in substantial losses and you should carefully consider whether commodity futures is suitable for you in light of your financial condition.