Kastel the more the equities take a pounding the more bullish you can be the commodities themselves because with oil driving the need to move to energy efficiency world over, demand for commodities is not going to slow. We have a world of infrastructure that became out of date the day the path to $200/barrel oil began. Got to displace steel with amluminium, decentralise stationary energy production, intensify agriculture with water that first needs to be desalinated, nuclear plants to build (lots of them), car fleets to replace, engines to modify, batteries to become more essential outside of your toilet torch ie to store mains power .... the list goes on ... more rail etc etc.
I agree with Jim Rogers. Metals prices are going much higher (aluminium in the box seat). Demand has to increase whilst the supply capacity may likely decrease. We have no choice but to consume. The cost base for commodity production is hyperinflating and actually likely to make some new projects marginal. Food and energy insecurity to also create more sovereign risk constraints on developing world commodity production eg South Africa recently.
Just my opinion ... remember I am only a farmer.
Im on holidays at the moment but had to check in on iHub :)
Got agricultural exposure?
