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Ignored for two decades by the investment community, commodities are making a resurgence. The simplest of asset classes to understand, commodities still remain an enigma to many investors. The under-investment by the producers of natural resources in the ‘80’s and‘90’s has left them unprepared for the largest industrialisation the world is ever likely to see. Mass migration from rural areas to new cities in China and India will put a huge strain on the supply-demand dynamic for many commodities, which has caused supply deficits or record low inventories.
The combined population of Europe and the U.S is 0.8 billion and demand is relatively stable. The combined population of China and India is 2.3 billion and demand is increasing – rapidly. We should see an increase in demand across all sectors whether it is Energy, Metals, Agriculture or Soft Commodities and believe that, assuming a good recovery from the global recession, this demand will be significantly higher in 5 years time and higher still in 15.
This is an exciting market where we envisage opportunities in both the upside and downside as prices overshoot and need to consolidate. With this in mind, Energy and Metals aren't enough and we also have access to Agricultural and Soft Commodities.
We are pleased to confirm we can take positions for our clients in the following commodities:
Energy Oil (NYMEX, Brent and Middle East), Gasoline, Natural Gas & Heating Oil
