Now’s the time to own commodities, says Goldman Sachs

Historically low supply and booming demand as the world recovers from COVID-19 make for ideal conditions to invest in commodities. There’s never been a better time to own commodities, according to US investment bank Goldman Sachs, which has bullishly forecast a decade-long commodity “super cycle”.

In a recent Bloomberg TV interview, the bank’s global head of commodities research Jeff Currie said he’s never in his 30-year career seen commodity markets pricing in the shortages they are right now.

Describing the current global economy as an “unprecedented” environment, Mr Currie highlighted the severe backwardation of most commodities’ price curves.

Backwardation is a market structure that indicates the cost of delivery today is higher than tomorrow. This event has only occurred seven times in the last 50 years and Mr Currie attributes it to “textbook shortages”.“2008 was a financial crisis – this is a molecule crisis. We’re out of everything: oil, gas, coal, copper, […]

Click here to view original web page at smallcaps.com.au

About the author: StockMan

Please remember:

The information provided here is for general knowledge and educational purposes only.
It is not intended to be a substitute for professional financial advice.
Every individual's financial situation is unique, and what works for one person may not work for another.
Before making any investment or financial decisions, you should always consult with a qualified financial advisor who understands your specific circumstances and goals.

Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, should never be acted upon. Please be aware that any information posted on this site should not be considered to be financial advice and i am not a financial advisor.