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The next phase of the commodities supercycle is here – Are you ready? [Video]

Since the middle of 2020, everyone from Goldman Sachs, JPMorgan to Bank of America called the beginning of a new Supercycle and hot-listed Commodities as their “preferred asset class over the next decade”. 

Fast forward three years on and this Commodity Supercycle has gone from strength to strength, showing no signs of slowing down anytime soon. 

As we enter the final quarter of the year, 2023 is now firmly on track to be a third consecutive year that has seen a total of 27 commodities ranging from the metals, energies to agriculture tallying up astronomical double to triple digit gains – outperforming every other asset class out there. 

And this could just be the beginning! 

Last week, a long list of the world’s most powerful Wall Street banks raised their price forecasts for the year ahead – stating that “we are now officially moving into the next phase of the Commodities Supercycle”. 

There have been six Supercycles for Commodities going back to 1791, averaging between 12 to 24 years apiece and we are now in a seventh that began in March 2020. 

The last Commodities Supercycle lasted from 1999 to 2011 and featured some explosive gains. Oil at one point surged from $10 to $150 a barrel, Copper from 60 cents to $4.60 a pound, Gold from $250 to $1921 an ounce and Corn from $2 to $8 a bushel. 

The similarities between then and now are simply too striking to ignore. 

Last week, WTI Crude Oil traded as high as $92 a barrel – tallying up a whopping gain of 41% since mid-June. While, Brent Crude Oil rocketed above $95 a barrel to hit a fresh 2023 record high. Over the last three months, the world's most traded Oil benchmark has racking up a stunning gain of over 49% from its 2023 lows. 

Elsewhere in the energy markets, Diesel prices soaring above $140 a barrel to notch up spectacular gain of more than 75% since summer. 

The unstoppable rally in the energy markets has also pulled many other Commodities higher including Aluminium, Copper, Cobalt, Nickel, Lithium, Palladium, Platinum, Zinc and Uranium – which is currently trading at the highest level since 2011. 

The bullish momentum has also split over into the agricultural commodity markets sending everything from Orange Juice, Coffee, Sugar, Corn, Wheat, Cocoa, Soybean and Rice prices skyrocketing to all-time record highs. 

So how much upside is left?

During the previous Supercycle, which ran between 1999 to 2011 – Commodities prices posted a whopping gain of 4000% within a 12-year stretch. 

If history is anything to go by, this rally is only just getting started! 

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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