Commodity agreements are agreements between producer and consumer countries to stabilize markets and increase average prices. Such agreements are common in many markets, including the coffee, tea and sugar markets. The first commodity fund (ETF), such as SPDR Gold Shares NYSE Arca: GLD and iShares Silver Trust NYSE Arca: SLV, owned the physical commodities. NYSE Arca: PALL (Palladium) and NYSE Arca: PPLT (platinum). However, most exchange traded commodities (ETCs) implement a futures trading strategy. At the time, Russian Prime Minister Dmitry Medvedev warned that Russia could fall into recession. He said: «We live in a dynamic and rapidly changing world. It`s so global and so complex that sometimes we can`t keep up with the changes. Analysts said the Russian economy was too dependent on raw materials. [33] A cash contract is a contract in which delivery and payment are made either immediately or with a brief delay. Physical trade usually requires visual control and is done in physical markets such as a farmers` market. On the other hand, derivatives markets require the existence of agreed standards to allow transactions without visual verification. However, unlike futures contracts, futures contracts are standardized from the point of view of contract law (as legal agreements) and traded on certain trading platforms (futures).

As a result, futures contracts are subject to a certain set of rules that may include, for example, the level of contracts and daily interest rates. In many cases, futures contracts are executed by a clearing house, allowing parties to negotiate with reduced counterparty risks. Commodity agreements often involve intervention systems such as buffer stocks and usually last only a few years, after which they are renegotiated. They differ from agreements such as OPEC, not least because producer and consumer countries, unlike agreements created solely to protect the interests of producers, concern both producing and consuming countries. Gold was the first product to be securitized in the early 1990s through an Exchange Traded Fund (ETF), but was not available for trading until 2003. [39] The idea of a gold etF was first officially conceived by Benchmark Asset Management Company Private Ltd in India when it applied to the Securities and Exchange Board of India in May 2002. [41] The first gold exchange traded fund was Gold Bullion Securities, which was launched at ASX in 2003, and the first publicly traded fund was iShares Silver Trust, which was launched on the NYSE in 2006.