Metals are the best bet in 2010
Wednesday, 6 January 2010
NEW DELHI, Jan 05 (Commodity Online): Do you know among the commodities metals were the best performing ones in 2009? If not, remember that not only gold other metals also performed extremely well in 2009 riding on hopes for a global economic recovery and fears of runaway inflation.
And, the bull run in metal is not to end soon, it will continue for 2010 also. Demand from emerging economies remains strong while developed nations are catching up with them as far as metals are concerned.
According to a Wall Street Journal report, while commodity prices rebounded sharply from lows early in the year, most closed well below records set before the economic crisis began in 2008, underpinning the reality that the recovery has just begun to gather momentum. The Dow Jones-UBS Commodity Index added nearly 19 per cent to 117.24 in 2009, about 41 per cent off its peak in 2008, the paper reported.
Leading the way in 2009 were base metals. Copper, which has many industrial uses, more than doubled, soaring 139 per cent. It ended the year at $3.3275 per pound but still 18 per cent shy of record prices hit in 2008. Lead, which is used in car batteries, also more than doubled, to $2,416 a metric tonne, followed by zinc, which was up 125 per cent, and aluminum, gaining 50 per cent.
Precious metals reaped smaller gains but stole the limelight. Gold was up 24 per cent for the year to $1,095.20 per troy ounce at Comex, the metals division of CME Group. It set 27 exchange records in the past 12 months amid waves of buying from funds and individual investors seeking a haven against inflation and a dropping dollar. But it is still 52 per cent below its inflation-adjusted high of $2,300 dating from 1980. Silver surged 49 per cent to $16.822 per troy ounce.
And, the bull run in metal is not to end soon, it will continue for 2010 also. Demand from emerging economies remains strong while developed nations are catching up with them as far as metals are concerned.
According to a Wall Street Journal report, while commodity prices rebounded sharply from lows early in the year, most closed well below records set before the economic crisis began in 2008, underpinning the reality that the recovery has just begun to gather momentum. The Dow Jones-UBS Commodity Index added nearly 19 per cent to 117.24 in 2009, about 41 per cent off its peak in 2008, the paper reported.
Leading the way in 2009 were base metals. Copper, which has many industrial uses, more than doubled, soaring 139 per cent. It ended the year at $3.3275 per pound but still 18 per cent shy of record prices hit in 2008. Lead, which is used in car batteries, also more than doubled, to $2,416 a metric tonne, followed by zinc, which was up 125 per cent, and aluminum, gaining 50 per cent.
Precious metals reaped smaller gains but stole the limelight. Gold was up 24 per cent for the year to $1,095.20 per troy ounce at Comex, the metals division of CME Group. It set 27 exchange records in the past 12 months amid waves of buying from funds and individual investors seeking a haven against inflation and a dropping dollar. But it is still 52 per cent below its inflation-adjusted high of $2,300 dating from 1980. Silver surged 49 per cent to $16.822 per troy ounce.