Investing in Commodities: A Promising Horizon for 2024
Commodities Market in 2024
The year 2024 has emerged as an exceptional period for commodities, presenting ideal opportunities for traders and investors looking to diversify their portfolios. Commodities offer a stability that stocks cannot match, being less volatile and, thus, more attractive to those seeking protection against market fluctuations and inflation. Investment in this sector remains popular due to its ability to provide stable returns and serve as a safe haven.
Commodities are available with real-time quotes, facilitating transactions and helping maintain a balanced portfolio. According to experts from Goldman Sachs, commodities can offer a 21% return over 12 months, while JP Morgan foresees a price increase driven by higher demand. Additionally, Wells Fargo Investment Institute anticipates a «supercycle» that could bring double-digit returns.
The 7 Best Commodities to Invest in July
The current global environment makes the commodities market a viable and profitable option. Here are the seven most recommended commodities to invest in July 2024:
1. Gold
2. Silver
3. Crude Oil (Brent)
4. Natural Gas
5. Lead
6. Cocoa
7. Corn
Gold
The demand for precious metals like gold has steadily grown due to its security, liquidity, and profitability. In 2023, the price of gold rose by approximately 13.5%, reaching historical highs. By mid-June 2024, gold was priced at around €2142.19 per ounce and remains a popular investment option due to its upward trend driven by massive purchases from China.
Silver
Silver is an attractive short-term investment due to its performance and crucial role in various industries, such as solar panels and 5G technology. In 2023, 50% of its use was industrial. By mid-June 2024, the price of silver was around €27.28 per ounce, with a 3.91% increase compared to May, making it one of the best options to invest in July.
Crude Oil (Brent)
Oil prices surged significantly during the second week of June 2024, driven by high demand from China and the United States. A barrel of Brent was priced above €76.15 in mid-June, and it is expected to maintain an upward trend, with Goldman Sachs projecting a 31% return.
Natural Gas
Natural gas is a promising option as a more sustainable energy source. Goldman Sachs anticipates that its price in Europe will double in 2024. The International Energy Agency expects a 30% increase in natural gas demand by 2040. By mid-June 2024, its price was €34.28 per megawatt hour.
Lead
Widely used in various industries, lead remains a popular investment. China, the largest global producer, leads both production and refining of lead. By mid-June 2024, its price was around €2069.37 per metric ton.
Cocoa
With its multiple uses and beneficial properties, cocoa is in growing demand. In June 2024, its price was €9174.64 per ton. Valued at over €1.9 trillion, the cocoa market is highly speculative, offering significant profit opportunities.
Corn
Fundamental for food production and biofuels, corn is a crucial commodity. With a price of €169.68 per ton in mid-June 2024, its demand and price are expected to rise due to decreased planting in the United States and global population growth.
In summary, commodities continue to offer a safe haven and profitable investment opportunities in 2024, with the potential to generate significant returns for traders and investors.