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Will commodities continue their reign as the best-performing asset class in 2025? [Video]

There’s no question, 2024 will go down in history as one of the most profitable years ever for Commodity traders, however 2025 is projected to be even bigger. 

Commodities have now been the best performing asset class in 2021, 2022, 2023 and 2024 – marking a fourth consecutive year that has seen a total of 47 Commodities ranging from the Metals, Energies to Agriculture notching up a series of back-to-back multi-year and all-time record highs! 

Soft Commodities lead the charge with Cocoa firmly positioning itself as the number one performing Commodity of 2024. Cocoa outperformed every major asset class from Bitcoin, the S&P 500 and the Magnificent Seven stocks – to score an explosive annual gain of more than 178% – reaching a new all-time record high of $13,000 per metric ton in December. 

In second place was Coffee with prices surging to their highest level in over 52 years – tallying up a whopping gain of more than 79%. 

Following closely behind was Orange Juice, Uranium and Natural Gas, which saw prices more than triple in the past 12-months. 

And last but definitely not least was Gold – with the precious metal continuing its unstoppable run higher, scaling new all-time record highs for a fifth consecutive quarter in a row. 

Gold has been on a parabolic run since October 2023, rallying from near the $1,800 level to score consecutive back-to-back all-time record highs – not once, not twice, but on 39 separate occasions in 2024. 

Gold's record-breaking run has been nothing short of impressive. Never before in history have we seen the precious metal score multiple all-time record highs in such a short space of time. 

And this could just the beginning! 

Collectively, the Commodity markets did not just make new highs in 2024, but skyrocketed higher as sentiment continued to turn increasingly more bullish. 

That's a tell-tale sign that this rally is just getting started and the bullish momentum is definitely set to continue throughout 2025. 

In fact, the early signs already look promising with Gold once again proving its status as the world's favourite go-to safe haven in times of escalating financial and geopolitical uncertainties. 

On Friday, Gold prices surged within striking distance of $2,700 an ounce to reach their highest level since November 2024 and extending gains for the fourth straight day. 

With just over a week to go until Donald Trump returns to the White House as the 47th President of the United States uncertainty surrounding his America-First policies have continued to fuel demand for the safe-haven metal. 

President-elect Donald Trump will take office on January 20 and has vowed to implement a 60% tariff on U.S imports from China and a universal baseline 10% tariff on imports from all other countries. Such tariffs could ignite global trade wars, driving up consumer prices and ultimately leading to higher inflation. And that’s an environment where Gold really thrives! 

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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