The commodity market is gradually turning into one of the main points of interest for investors.
Estimated byUBS, the potential is now not only in oil. The Bank recommends looking wider — atcopper, agricultural commodities and gold.
The main idea is simple:
raw materials can simultaneously yield returns and protect the portfolio from inflation and geopolitical shocks.
Copper — AI Bet
One of the most interesting segments is copper.
The development of data centers, artificial intelligence, electric vehicles and energy infrastructure requires a huge amount of electricity and network equipment.
This means that the structural demand for copper is also growing.
UBS expects the supply shortage to remain on the middle horizon precisely because of the combination of electrification and the construction of AI infrastructure.
Gold — protection against uncertainty
Gold remains the other key asset.
Central banks continue to increase interest in the metal as a tool for diversifying reserves.
In a study by the World Gold Council89% of surveyed central banksexpect the growth of world gold reserves in the next 12 months.
This creates long-term demand support even with a high gold price.
Agricultural products — another type of risk
Agro-commodities are different from metals and oil: yields, droughts, temperature and other weather factors are of great importance here.
Therefore, weather shocks can quickly change the balance of supply and price.
Main conclusion
UBS actually suggests looking at raw materials asseparate investment class, not just as a bet on oil.
Copper gives exposure to AI and electrification.
Gold — for inflation, geopolitics and diversification of reserves.
Agricultural products — for weather and food risks.
That is why the next commodity cycle can be much wider than the oil market.
