Investment Vision 2011 Series: Commodity Investments

Insight Group PLC - Research Room: Commodity Investments

Investors expect to see continued strong demand from emerging markets and they predict another strong year for commodities

-Kevin Norrish, Managing Director, Barclays Capital Commodities Research

Commodities are the talk of the investment market as their impressive performance in 2010 saw the price of oil, agricultural products, precious metals and other raw materials rise significantly.

Many of the world's key commodities have surpassed their 2008 peaks including gold, corn and copper, whilst others are still relatively undervalued namely oil and wheat (Reuters). The price of Brent crude oil has risen more than 70% whilst corn has seen their price double. According to the Commodity Research Bureau's index of non-fuel commodities, prices have risen by approximately 40% (Federal Bank of San Francisco).

General consensus amongst economists and investors worldwide is that commodity prices will gain further ground in 2011 and over the coming years, as stronger global GDP bolsters demand led by the particularly commodity-intensive emerging market economies.

In this report

  • Executive summary
  • Commodity Investment Market
  • Why invest in Commodities?
  • Gold, Silver, Crude Oil
  • Agriculture Commodities – Grain
  • PGM's Platinum & Palladium
  • Copper, Coffee, Renewable Energy
  • Cotton, Liquid Natural Gas (LNG)
 

Key data

  • Capital inflows to commodities to exceed $60 biliion in 2011
  • Gold reached a 10-year peak of 3,812tonnes in 2010
  • Silver increased by 47% in 2010
  • Future prices of oil to reach $150 a barrel
  • Platinum prices will reach $17,50 an ounce
  • China's renewable energy usage will reach 26.7% by 2030

independently written by our Market Intelligence & Research Unit (MIRU) to find out more about this flourishing region.

Insight Group PLC - Research Room: Commodity Investments map