Making money off of raw materials is a good way to make money.

Last Updated: 15. November 2023By

How many investors have probably taken part in the great rally in sugar this year? Or the super performance in uranium? Who (other than central banks) has bet on gold that has fulfilled its protective function against inflation in a stable and secure manner?

Sugar and uranium have already developed splendidly and the year is not over yet.

Strong prospects for commodities Analysts from Goldman Sachs are currently recommending commodities and forecast a return of 21% in Goldman Sachs‘ own S&P GSCI Commodity Commodity Index for next year.

The analysts cite the end of monetary tightening by central banks and recession fears as reasons.

What appears more important to me is the fact that global producers have used up existing stocks significantly in many markets in view of the depressed mood this year. This means that from next year an increasing demand for raw materials can be expected.

This is particularly true of industrial metals, whose demand is high, especially from China, despite a slowdown in the real estate sector. Goldman Sachs forecasts an increase in the copper price of 25% in 2024 and an increase in the aluminum price of 12%.

In addition there is the restricted oil supply from OPEC+. There is also a shortage of refinery capacity, which keeps the supply of gasoline and diesel low compared to demand. And then there are the prospects for LNG. Although gas stocks are currently high, longer-term contracts are being concluded with US suppliers.

Europe and Asia are increasingly competing with each other. The German Federal Network Agency has already warned that in the event of a colder winter, the gas demand will not necessarily be covered.

Meanwhile, global central banks are about to break the record of gold purchases last year. In times of war, worry and distress, real values โ€‹โ€‹are what counts.

What could be more real than commodities?