
According to many pundits, the bull market for commodities is almost four years old, beginning toward the end of 2004 when gold prices hit a 16-year high and oil futures prices stood at $55 a barrel. Since then, the underlying trend among virtually all commodity categories has been that prices continue to increase in response to limited supply, and in many cases, outright scarcity.
Indeed, Malthusian viewpoints on inevitable shortages may no longer be so easily dismissed as it becomes apparent that many more people globally now desire and have the financial means to consume at the same levels as Western societies. It is as yet unknown whether this demand for goods and services by so many more people will result in a certain amount of permanent scarcity, or if it will lead to the development of innovations and new technologies and methods that will allow supply and demand to return to more of its historic equilibrium.
What most experts agree on, however, is that demand will stay at a high level for years to come. And as a result, there will be ample investment opportunities not just in core commodities but also in the areas that spawn new technologies, products, techniques and services. Solar panels and systems that can extract and deliver more power from the sun, seeds that can provide greater crop yields and resist a wider variety of pests, or better designed engines and new infrastructure to make hydrogen a viable fuel substitute—these and other possible developments are likely to present investors with a growing list of commodities-related investment options in the years to come.
These continuing trends in direct and related commodities investing have already led managers to develop a variety of strategies in order to gain access to the markets, opening up many choices for investors. But at the same time, these developments also complicate investors’ attempts to assess the best means of getting exposure to these assets and determining the appropriate allocation to them.
Some of the topics which will be discussed at this year’s Forum include:
The 3rd Annual Global Commodities Investment Forum will thoroughly examine these trends and issues, seeking to discover the most significant opportunities and identify the risks investors must consider. Our program will also provide a framework for structuring a commodities portfolio that can meet individual investment objectives and take full advantage of market developments.