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Here’s why Warren Buffett is going all-in on the commodities supercycle [Video]

Another day and another Commodity skyrockets to all-time record highs. That’s one of the most exciting hallmarks of the current Commodities Supercycle, that we find ourselves in right now!

This week, the energy markets took centre stage with Natural Gas prices surging back to all-time highs. Natural Gas price have now tripled since January – rallying from just under $3.50 to a current high of $8.54 – notching up a whopping gain of over 144%, so far this year.

Elsewhere in the energy markets, Crude Oil prices also started the week on a tear, surging to their highest level since March – in anticipation of higher demand as China – the world’s largest importer of crude began easing coronavirus-related restrictions.

Expectations are now running high, that the Oil market may see an identical V-shape recovery in demand as seen in 2020 when China ended lockdown. That event triggered an historic bull run taking Oil prices from sub $40 a barrel in April 2020 to a decade high of almost $140 a barrel in April 2022. That's a record-breaking gain of more than 450%, in the last two years.

The bullish momentum has also split over into other commodities with Aluminium, Copper, Nickel, Gold, Silver, Palladium and Zinc prices soaring to fresh monthly and multi-year highs.

Over the past few years, the world has experienced an escalating series of disruptions from the U.S-China trade war, the Covid-19 pandemic, global lockdowns, Russia's war with Ukraine to dueling economic sanctions and export controls.

The cumulative effects of these crises is fuelling an unstoppable Commodity Supercycle sending everything from the metals, energies to agriculture markets skyrocketing and positioning the entire sector as one of the most lucrative asset classes of this year, if not this decade.

As Commodity prices continue to surge, so has Wall Street’s interest.

Throughout this year, a long list of leading Wall Street banks from Goldman Sachs, JPMorgan to Bank of America have described commodities as their “preferred asset class over the next decade”.

This month, Warren Buffett, who is arguably the world's most successful investor also joined that list.

Speaking at Berkshire Hathaway's annual shareholders meeting, Buffett revealed that his biggest investment ever with a market value of over $51 billion is riding on the Commodities Supercycle.

In the words of Buffett, “the Commodity and Energy markets right now, represent one of the greatest generational opportunities of our lifetime, not to be missed.”

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

Author

Phil Carr

Phil Carr

The Gold & Silver Club

Phil is the co-founder and Head of Trading at The Gold & Silver Club, an international Commodities Trading Firm specializing in Metals, Energies and Soft Commodities.

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