For investors willing to take a risk, or as a small part of a diversified portfolio, commodities like gold, silver, crude oil are an attractive option. The price of gold reached a record high recently. Base metals are also good commodities to trade in. The natural resources sector is riding a wave of demand from emerging economies such as China and India - so it's possible it hasn't reached its peak. Many people prefer to trade in agro-commodities.

Commodities like gold and silver are particularly attractive in inflationary conditions. As paper money loses its value, gold and silver are seen as a safe haven - but nobody knows if the prices will continue to rise and it could be a bubble about to burst.

If you are considering investing in commodities, use a financial adviser who has expertise in this area and can pick funds with experienced managers.

You need to be very careful, and stick to the 5% rule - no more than this proportion of your portfolio should be in commodities.