Analysts are now predicting that the commodities market is poised to experience a tremendous amount of growth throughout the year and into the next decade. While it remains a fact that there are limited resources, the human population keeps expanding at an astronomical rate. Economists suggest this will create a lot of competition for the ever-dwindling surplus of resources currently left. In turn, prices of these resources will inevitably rise, and those who are in possession of tangible commodities will be able to cash in on their sales.
The United Nations predicts that the world’s population will rise from the current figure of seven billion to nine billion, by 2050. This is a staggering increase, and is predicted to create tension on the markets as people vie for resources. In a February 2013 article, Bloomberg stated the price of food has doubled in the past ten years. Importantly, not all of these increases have affected the consumer in the western world, mostly due to subsidies. However, the fact remains that the raw price of commodities has increased sharply.
Yet the case of food prices is not an anomaly in the commodities market. Most of the commodities are increasing in value at a staggering rate, due to the same market pressures from population growth. Expert analysts predict this will have an increasing effect on the future precious metals outlook,as the world’s population grows. Not only will there be consumers who are interested in purchasing products made with precious metals, but also there will be a diminished supply vis-à-vis population. Demand for products such as automobiles and consumer electronics will not diminish, and since these industries use precious metals in their production, the market will experience an increase in value.
Translating Growth into Gains
Savvy investors should take heed of the population growth trends in planning their investments into retirement. The United Nations’ prediction of an additional two billion people is less than forty years away, so this can affect many investors who are interested in creating a strong nest egg for their future. Taking these trends into account should spur the investors with the best foresight to start purchasing large quantities of tangible precious metals before their price point is driven up.
Subsequently, these same investors will be in a good position to trade in on their commodities at the right time, as evidenced by the strong projected precious metals outlook in the market. Yet in order to do so, it is imperative that investors contact a reputable precious metals broker and discuss their plans. The broker will be able to relay their expert opinion concerning the precious metals outlookand recommend particular metals that will fit their individual investment plan.
Different commodities such as gold, silver, platinum and palladium all have different projected growth cycles, so it is important to choose the right one for your desired outcome. Choosing the correct investment will inevitably lead to a future in which you will see your portfolio develop sustained growth.