Why I think the commodities party is just beginning.

The Facts:

Tens of trillions of dollars invested in global bonds and stocks, still only $80 billion in commodities.

Many surveys showing far less interest in commodities than in any other sector including, High-Yield Bonds, Cash, Stocks and Real Estate.

General commodities and gold, usually work inversely with stocks and the Dollar. Commodities topped in 1980, just when Dow was warming up, and bottomed out in 2000 at the peak of the Tech Bubble.

A wave of vehicles running on ethanol would greatly under supply the corn and sugar sectors.

In times of what seems to be inevitable inflation and a currently overvalued dollar, currency hedges of gold and silver will become more common place.

Worries of diminishing supply in oil, gold, silver and agricultural crops could greatly surge a demand in the coming years.

Stocks doubled more than 3 times before it was called a “Bubble”. Stocks still have vast room to correct while many commodities are currently below their doubling mark.

The last Bull in commodities lasted almost 14 years. This “Bull” is still but a calf.

The $20-something “Iranian-War-Premium” is what’s evaporating, not the price for oil.

Inflation adjusted, Gold holds a record above $2,000 an ounce, silver at about $50 and Oil at $160 a barrel.



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