Here’s why 2023 is set to be the biggest year on record for commodity traders [Video]
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Commodities have made an exceptional start to 2023 – racking up specular gains already within the first two weeks of the year, as the sector-wide Supercycle continues to gather momentum.
Last week, Aluminium, Copper and Iron prices took centre stage surging to multi-month highs – tallying up double-digit gains. Elsewhere, Crude Oil prices posted their biggest weekly gain since October with WTI breaking above $80 a barrel, while Brent topped $85 a barrel.
The bullish momentum also split over into the Precious Metals with Silver prices scaling above $24 an ounce – while the star performer amongst the Precious Metals was Gold.
Gold has been on an unstoppable run this month, notching up its sixth consecutive day of gains on Friday – sending the yellow metal skyrocketing above $1,900 an ounce.
Since the final quarter of 2022, Gold prices have gone parabolic rallying over $300 an ounce from their November lows of $1,600.
Interestingly, each time, Commodities have made an exceptional start to the year – they have always gone onto the finish the year as the best performing asset class.
Now we are beginning to see why a long list of Wall Street banks from Goldman Sachs, JPMorgan to Bank of America have described Commodities as their “preferred asset class over the next decade”.
There are plenty of reasons why the world's most powerful financial institutions are “extremely bullish” on Commodities. These include; underinvestment in new capacity, tightening supply vs soaring demand, China’s reopening, economic stagflation and signs of a dollar peak – coupled with a slowing of global central bank rate hikes, leading to the eventual end of rate hikes in the first quarter of 2023.
And let’s not forget the switch toward a greener world, which is fuelling fierce demand for Commodities such as Aluminium, Copper, Cobalt, Nickel, Lithium and Uranium as economies race to decarbonize the world by 2030.
The previous two Supercycles took place in the 1970s and the 2000s. In both cases, the Commodities sector resembled the identical tell-tale signs, as it’s displaying once again right now.
If history is anything to go by, then the stage is almost certainty set for Commodity prices to outperform every other asset class out there for a third consecutive year running!
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:
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