Commodity Supercycle Sets New Records – What’s Next for Prices?
Last week, a long list of commodities hit multi-year highs.
Aluminum prices hit an all-time high. Nickel prices hit 10-year highs and uranium prices hit 8-year highs – surpassing a 7-year high set only a month ago.
The bullish momentum spread to other commodities as well, with natural gas rising more than 16% to post its strongest weekly gain since August 2020.
Meanwhile, WTI crude oil climbed above $88 a barrel and Brent crude oil hit $90 a barrel, recording a gain of more than 35% since the start of this year.
Elsewhere in the commodities market, palladium prices hit a four-month high, taking this year’s gains to more than 25%. The explosive rally in palladium also boosted lithium, pushing prices to an all-time high. Lithium prices are now up 497% compared to the same time last year.
There are many reasons why commodities are on the move including; sharply rising global inflation, tight supply in the face of soaring demand, logistical bottlenecks linked to ever-increasing supply chain issues – all combined with a highly disruptive economic recovery after the pandemic that shows no signs of waning anytime soon.
And let’s not forget the shift to a greener world, which is fueling fierce demand for raw materials such as aluminum, copper, palladium, nickel, lithium and uranium as economies race to decarbonize. the world by 2030.
Overall, the evidence is mounting that a new commodity supercycle is underway. It goes without saying that commodities are definitely one of the hottest and most exciting asset classes to watch in 2022.
Where do the prices go next? Watch The Commodity Report now, for my latest price forecasts and predictions:
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