Investing in Commodities

Raw materials are the building blocks of any society; from the food we eat to the fuel we use to keep our houses warm. With the global population expected to rise by approximately 45% to 9 billion by 2040, global demand for raw materials will inevitably expand. Furthermore, this increase in the population will increase scarcity of natural resources. Therefore, the economic fundamentals suggest that investing in commodities could be a worthwhile investment if you are taking a long term view (7-10 years

By investing in commodities you are directly tapping into the economic growth stories of emerging markets such as China, India and Brazil. For example, China is now the largest consumer of all commodities, except for oil. China now accounts for 20-30% of all base metal consumption, as they quickly build infrastructure and cities. Moreover, as the prosperity rises in the world’s two most populous countries, their demand for raw materials will increase even further.

Commodities are very sensitive to price and often experience dramatic swings that can often reduce the value of your investment; however. Over the long-term (7-10 years) profits could far exceed the returns of standard UK-based equity funds.

Invest in Commodities now