Seasonal factors play a significant role in driving commodity prices. Understanding these seasonal patterns is crucial for investors looking to navigate this asset class effectively.
Here are some key factors influencing the prices of various commodities:
While these funds can make a great addition to a diversified portfolio, the following are the four selected commodities that you can consider including in your portfolio for growth.
It is always good to have some gold in our investment portfolio. Apart from its performance (over the last 20 years it has achieved an average return of more than +8% per year), it is very interesting for diversification and to protect us from adversities. A combination of stocks and gold makes a portfolio much more solid and balanced.
Its current bullish strength is due to:
If we take the last 10 years, the price at the end of August was +3.25% higher on average than at the beginning of the year. At the end of September, it was +8.22% higher on average. From September to the end of December, it was +13.29% higher.
If we take the last 50 years, the gold price is best between November and the end of February, when 3 of the 4 best monthly results of the year are usually produced. March is usually the worst month.
The best ETF is the SPDR Gold Shares (NYSE:GLD).
Arabica coffee futures hit new two-month lows. Brazil's coffee exports were up nearly 48% in February compared to a year earlier. Production is expected to be up 5.8% from the previous year, which will generate a surplus of 1 million bags.
It is interesting because as you can see in the chart, it is in a sideways range and once it touches one of the extremes it bounces very well.
It is possible to trade with both Robusta and Arabica
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