Should I invest in commodities in 2024?
We believe a longer-term commodities bull market could resume in 2024 as they act as a hedge against global conflict and inflation.
"After three years of extreme volatility, commodities prices are set to broadly stabilize in 2024," according a report published by the Economist Intelligence Unit (the EIU). Moreover, "This apparent stasis may come as a surprise given the many geopolitical headwinds buffeting the global economy at the moment.
Gold prices could rise moderately in 2024, but other precious metals could do better. The start of next year could remain challenging for precious metals based on our central forecast that the Fed will be more hawkish than the market is expecting, thus helping to keep the dollar strong.
After a year of historic demand contraction in corn and soybeans, 2024 will deliver enough well-priced supplies to support a natural rebound. World coarse grain demand will rise 2% YOY and stocks nearly 4%. Global oilseed crush will rise a modest 3% in 2023/24 while stocks expand 10%.
Commodities stand to benefit from underinvestment and the clean energy transition. PIMCO has a positive outlook for commodities based on supply constraints, the transition to a net-zero economy, and their historical correlation with inflation.
Agricultural Price Forecast 2024
Our analysts expect agricultural prices to average around 8% lower in 2024 compared to this year.
Other expectations for 2024
Teves was also bullish on silver in 2024 if the Fed does ease interest rates. "In a scenario where the Fed is easing, we think silver can do really well. It tends to outperform a move in gold," Teves said.
The gold price will be stably growing in the long term. The historical high was set at $2,073 in May 2024. Most expert analysts predict that the XAUUSD rate will rise. The precious metal is expected to update its historical peak: the rate may exceed $2,300 in early 2024.
The U.S. corn outlook for 2024/25 is for lower production, greater domestic use, increased exports, and higher ending stocks. The corn crop is projected at 15.040 billion bushels, down about 2 percent from the prior year's record. Corn planted area is forecast at 91.0 million acres, down 3.6 million from a year ago.
The commodities with the highest export share (whose export shares account for 40 percent or more of their total market value) include fruits and tree nuts, oilseeds, and food grains such as rice and wheat. The United States tends to export a higher share of non-manufactured products than manufactured products.
What agricultural commodity makes the most money?
Corn, soybeans account for more than half of the 2022 U.S. crop cash receipts. Crop cash receipts totaled $278.2 billion in calendar year 2022. Receipts from corn and soybeans accounted for $148.5 billion (53.4 percent) of the total.
Purchase Precious Metal Investments.
Precious metals, like gold or silver, tend to perform well during market slowdowns. But since the demand for these kinds of commodities often increases during recessions, their prices usually go up too.
Commodities can be an extremely volatile asset class, so it's important to be comfortable with the potential level of price swings before you make an investment.
What happens to commodities in a recession? As a general rule, when economies slow, industrial outputs decline due to fewer infrastructure projects and house building, causing the demand for commodities to fall and prices to decline.
1. Positive returns -- but smaller than in 2023. I think that the overall stock market will deliver positive returns in 2024. However, I expect those returns to be somewhat smaller than they were last year.
"Some traders predict a flat or down market in the first half of 2024 due to high inflation, recession fears and rate hikes from the Fed. However, others foresee a bull market continuing, citing potential Fed rate cuts, earnings growth and historical trends around election years."
Markets will be more exposed to shocks, of which three stand out: a sharp economic rebound, bad weather and military blow-ups.
(NYSE:W), Match Group, Inc. (NASDAQ:MTCH), and Palantir Technologies Inc. (NYSE:PLTR) are some of the stocks that will double in 2024, besides StoneCo Ltd. (NASDAQ:STNE).
Is investing in gold and silver an intelligent move in 2024? The answer is yes, based on the current economic conditions and potential market volatility. Investing in precious metals such as gold and silver can help protect your portfolio against inflation and economic uncertainty.
03/03/2024, Sunday, 12:15 am CT. According to the latest long-term forecast, Silver price will hit $25 by the middle of 2024 and then $30 by the middle of 2025. Silver will rise to $40 within the year of 2028, $50 in 2029, $60 in 2031, $70 in 2033, $75 in 2034 and $80 in 2035.
Will silver hit $100 an ounce?
Many experts in the space expect silver to perform strongly in the years to come, but don't necessarily see it reaching US$100 or more, especially given the current macroeconomic conditions.
As of December 19, 2023, the spot price of gold was $2,024 per ounce. Considering an annual growth rate of 11.2%, an ounce of gold could be worth about $2,251 in one year. In five years, an ounce of gold could be worth about $3,441, provided that the value continues to grow at a rate of 11.2%.
According to the latest long-term forecast, Gold price will hit $2,400 by the end of 2025 and then $2,700 by the end of 2026. Gold will rise to $3,000 within the year of 2027, $3,500 in 2030 and $4,000 in 2033. This is one of the most bullish gold rate forecast for the next 5 and 10 years.
Capitalizing on Peak Prices and Timing the Market:
In conclusion, 2024 may indeed be the perfect time to sell gold, as favorable market conditions and emerging trends create an opportune moment for investors to unlock its potential value.
We can rely on these data to suggest that in ten years, Silver can grow to a minimum of $150 an ounce from the current price of $20.75 an ounce. On the upside, it could reach up to $750 an ounce if the conditions are right. These are all highly realistic in the long term.
