The Covid-19 pandemic has hit industries around the globe hard. Stock markets crashed, employees were sacked and commodity prices swayed having a real impact on the global economy. To further worsen the situation, investors were quick to withdraw their investments in commodities further crashing the global economy.
With the pandemic slowing its effects down, oil is gradually attempting a recovery whereas expensive materials like gold, palladium, silver etc. are seeing a rapid appreciation in their value. Certain agricultural commodities are also expected to increase their value becoming one of the few commodities worth investing in. Financial planners and investors are now diversifying into big environmental impact products with huge environmental applications, such oil safety products: https://www.fuelfix.com.au/product/spill-containment-kit/
Given the slow progress in achieving a global economic stability, investors are still very crucial about what commodities to invest in. Here’s our list of a few commodities which can still promise you a good ROI.
Gold: For over centuries, gold has been an investors’ favorite and the global pandemic of 2020 has reassured the importance of gold as it continues to be the best performing asset of 2020. It grew by 18.3 per cent between March and May reaching $1,736. The price remained static for a while owing to the fall in the prices of bond yields as well as the investors’ security desire. With the US Dollar not regaining its strength, gold is taking all the advantage and is soaring as an investment commodity.
Palladium: Palladium is one of the most sought after materials in the west. In 2019, palladium saw a massive increase its price reach to the peak of $2,547. However, the covid-19 pandemic didn’t spare it and had a massive impact on its price which plunged down by $1,800. However, it soon began regaining its value in May. Palladium is worth an investment owing to the sheer imbalance in its supply/demand chain. According to experts, the value for palladium will rise considerably due to a decrease in its supply, which is also an outcome of the pandemic since minors and excavators in Russia are not operating to their full capacity.
Arabica coffee: It might come as a surprise but Arabic Coffee indeed is one of the top commodities to invest in this season. It is one of the very few agricultural commodities that become an investor’s money making machine. The COVID-19 pandemic also impacted the harvesting of Arabica Coffee eventually causing a decrease in supply and consequent increase in the price.
Silver: Investors has always under estimated silver and undoubtedly the under-performance depicted by it in the recent years never restored faith in its ROI. However, its low cost is exactly what makes it a good commodity to invest in. Since silver is primarily used in the electrical industry that would mean an increase in demand once the pandemic subsides, pushing the prices up by several per cent. A lot of companies in which utilize silver as a basic component of their products have already opened up and the demand of the material is gradually increasing. Investing in the commodity now is a wise decision because we have clear indicators that the price of silver will go up sooner or later.