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Why invest in commodities?

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13th Nov 2009 by Gary

The best reason to invest in commodities is we are in a time of great change and advancement in Asia, especially China, and the need for raw materials will continue to force the price of commodites up overall. China isn't going to stop building any time soon, and so materials needed in whatever they're building up concerning their infrastructure will continue to be in high demand. With other countries fighting for natural resources as well, this will also put upward pressure on the prices of most commodiies. We're in the middle of a commodity bull market, and while the current economic crisis has temporarily slowed it down, it'll come back roaring once nations and companies begin spending money again. The growing need of food with no more land will also increase food prices in the years ahead. In other words, the population keeps growing while resources are limited. So supply and demand ensures a strong commodity market for a number of years.

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9th Nov 2009 In Commodities 1 Answers | 297 Views
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