The Bullish Case for Commodities: Experts Predict More Upside Ahead

Are you ready to chase after the pots of gold at the end of this market’s rainbow? Despite a recent cooling off period in the commodity frenzy, Wall Street experts are still bullish on the long-term prospects of commodities. With demand from China slowing down and hawkish Fed commentary causing some investors to take profits, it may seem like the rally is losing steam. However, the fundamentals are still strong, and many believe that the record-setting rally will pick back up.

According to Jonathan Krinsky, BTIG’s chief market technician, the recent outperformance of silver relative to gold is a positive sign for the precious metal bull market. He believes that gold still has room to grow and that there is no indication of a final top in sight. With gold futures up 12% this year and silver up 27%, it’s clear that precious metals are still in demand.

Copper, on the other hand, has been the star performer, reaching above $11,000 a ton for the first time ever. Investors are betting on copper playing a crucial role in the transition to renewables and EVs, as well as in data center buildouts due to AI. Wells Fargo’s head of real asset strategy, John LaForge, sees this as part of a commodity supercycle that started four years ago and could last another six to 10 years.

Bank of America’s head of metals research, Michael Widmer, is also bullish on copper, seeing it as a buy-the-dip opportunity. He and his team predict that copper prices could rally more than 25% from current levels to reach an average of $12,000 per ton in 2025. For investors looking to capitalize on this trend, Bank of America recommends companies like Antofagasta, Freeport-McMoRan, and Teck Resources for copper, and Franco Nevada and Wheaton Precious for gold.

With economic growth in the US supporting commodities demand, now may be the perfect time to consider adding some metal to your portfolio. Whether you’re a seasoned investor or just starting out, the potential for growth in the commodities market is hard to ignore. So grab your umbrella and get ready to chase after those pots of gold at the end of the rainbow.