Vancouver Resource Investment Conference: Current Commodity Prices Have Me Feeling Very Greedy
While 2022 was rough for most investments, the commodity market had a more mixed record. Oil and natural gas prices were strong throughout the year. And amid high inflation and volatile markets, precious metals like gold held their own, with only a slight decline.
The performance is even more impressive when considering how these assets were up against a rising US dollar. Typically, a strengthening dollar will tend to weigh on commodity prices.
That could suggest a further bullish move higher for commodities in the next year. Several commodities, such as copper, are facing potential shortages.
Rising demand for goods, whether from new technologies or improving emerging markets, suggests that prices could have room to move forward. And that could have a tailwind from a weakening dollar.
It’s possible that investors in the commodity space could see some of the best investment opportunities since 1999-2000. That was the last generational bottom for commodities.
Even commodities that have performed well recently, such as oil, can continue to move higher. Demand continues to increase. And there’s been substantial underinvestment in the space over the past few years. Part of that was from the collapse of shale companies. Part was from the perceived shift towards green energy.
Either way, that points to a potential for a further increase in energy prices and energy stocks, even in a slow economy.
