Commodities

As it is the end of the year, I have been sorting out a lot of old bits of paper and came across an article in a consumer magazine Investors Week, which I edited at the beginning of the decade.

Recent strong price gains across commodity markets, especially base metal equities, now urge caution to some degree.

Gold is entering a new era. In the past gold has been thought of primarily as a safe haven, but now it is recognised as a preserver of wealth by both institutional and private investors, relevant whatever the economic weather.

Threadneedle's head of commodities David Donora is bullish on both the short and long-term outlook for commodities, though he believes the medium-term picture is uncertain.

Supply of commodities is affected by the gap between the cost of production and the price at which that commodity has been trading

Interesting investment opportunities exist across the three main natural resources areas: energy, metals and agriculture. In recent months the energy, metals and mining sectors have been particularly strong performers, with companies such as South African...

An ounce of gold now costs an all time high of $1,043.77 after a dip in the dollar boosted the attractiveness of metals to investors.

As an asset, timberland contains the characteristic of many natural resources currently traded, stored and incorporated within investment portfolios, with a number of substantial benefits

The commodities sector has endured quite a remarkable period since November last year, with demand for commodities rebounding strongly.

We believe there is a strong strategic case for choosing to invest in commodities. Over the next 15-20 years, we expect demand for the world's natural resources to grow at a rapid pace.