Commodities could be Big earner for Alternative investors, claims AAA
Commodity investors are expected to reap the benefits of increasing prices this year, according to recent forecasts by Barclays Capital.
Copper is one commodity that is forecast to see prices rise this year. According to the San Francisco Chronicle, which said that prices stood at about $1 a pound in 2004, rising steadily to $4 per pound in 2006. The price then plunged during the global economic collapse, rising to a high of $4.50 last year. Current prices stand at $3.90 and analysts expect it to rise in line with the further industrialisation of emerging economic such as India and China, which both have huge demand for Copper.
Gold is another favorite among the analysts, many of whom were found to be continuing their bullish trend about the precious metal when interviewed by Barclays Capital on the subject. Prices have risen hugely over recent years, hitting an all-time high of $1,917 in August last year.
However, it did lose some ground over the following months, finishing the year at a value of $1,600. Current prices are around $1,700 and demand is still high from the world’s central banks, suggesting that prices will continue to grow.
Alternative Asset Analysis (AAA) is keen to ensure that timber is added to the list of promising commodities for 2012 investments. Its analysis partner, Anthony Johnson, said, “The demand for sustainably produced timber is rising exponentially as a result of the economic growth in India, China and Brazil, which are all desperate to get their hands on raw materials.”
AAA claims that investing in forestry plantations run by investment firms like Greenwood Management, in countries like Brazil and Costa Rica, can offer an easy and relatively low-entry level introduction to ethically sound commodities investment.
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