Another day and another Commodity skyrockets to all-time record highs. That’s one of the most exciting trends of the current Commodities Supercycle, that we find ourselves in right now!
Traders are pumping more money into Commodities right now than at any time in the last decade, to capitalize on the four biggest and most explosive macro themes driving the Commodities Supercycle from Rapidly Surging Inflation, The Global Energy Shock, EV Revolution and Global Food Crisis.
One of the dominant themes of the current Commodity Supercycle that needs no introduction is the Global Energy Shock. This has captured the world's attention and positioned the energy sector as one of the hottest asset classes of 2022.
It's impossible to talk about the energy sector without mentioning Natural Gas, which right now is on an absolute tear and breaking new records almost daily.
This week, Natural Gas prices once again blasted through all-time record highs. Natural Gas price have now tripled since January – rallying from just under $3.50 to a current high of $9.45 – notching up a whopping gain of over 169%, so far this year.
The spectacular surge in prices has prompted traders to increase bullish calls for prices to soar further this year and reach new record highs of $15 to $18 by March 2023.
As traders very well know – Natural Gas prices are one of the leading indicators of inflation. In addition to heating and cooling, Natural Gas prices factor into the cost of producing everything the world needs and heavily relies from; Electricity, Fertilizer, Agricultural Commodities to key industrial Metals such as Aluminium, Copper, Steel, Nickel, Lithium, Palladium and Uranium, just to name a few. Historically, when a predominant sector of the global economy such as Natural Gas or Crude Oil prices soar, they almost inevitably take the rest of the Commodities complex along with them!
So far this year a total of 27 Commodities ranging from the metals, energies to soft commodities have tallied up astronomical double to triple digit gains, already within the first 5 month of 2022.
And this is just the beginning!
To quote Goldman Sachs, “they have never seen the Commodities markets this bullish before”.
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions.
Trading has large potential rewards, but also large potential risk and may not be suitable for all investors. The value of your investments and income may go down as well as up. You should not speculate with capital that you cannot afford to lose. Ensure you fully understand the risks and seek independent advice if necessary.