Commodity Derivative Market is one of the important and flourishing markets in India. It also supports the agricultural sector, the backbone of India. This market has become the most desirable investment option for both the small and large investors. Accumulation of wealth, predominantly through investments, has been the prime motive of every human life on the earth. Investments are considered to be safe and good when they are presumed to give maximum return with minimum risk. Though an investment in the commodity market is considered to be a little risky, there are some commodities that may be proved to be safe. Investments in commodity market have been less risky than that of the stock market. This study examined the volatility of prices of Six Base Metals during the study period from 1st June 2010 to 31st May 2011. As compared to other base metals, the commodity, Aluminium, has suffered less volatility. Therefore, investors who trade in Multi Commodity Exchange are advised to invest in this commodity. From the analysis of the volatility of the prices of Base metals, Aluminium, has been considered to be the safest metal to invest in.

Commodity Derivative Market is one of the important and flourishing markets in India. It also supports the agricultural sector, the backbone of India. This market has become the most desirable investment option for both the small and large investors. Accumulation of wealth, predominantly through ...