Could we be facing the biggest commodity supply squeeze in history?
As we move through the second half of 2022, the global energy crisis is making headlines and positioning itself as one of the biggest money-making opportunities in the current financial climate.
Every major economy has been hit by the unprecedented surge in energy prices this year, which has pushed inflation to historic multi-decade highs.
Inflation, combined with the Global Energy Shock and worsening Supply Crisis is whipping up an extremely bullish money-making storm across the entire Commodities complex.
During the first half of 2022, a total of 27 Commodities ranging from the Metals, Energies to Agriculture soared at the fastest pace ever recorded – notching up astronomical double to triple digit gains in the process. Even better, this commodities boom is just beginning. Analysts are forecasting even bigger price increases in the months ahead as demand continues to outstrip supply. So if you’re looking to make a quick profit, now is the time to get in on the action.
Is the rally over and has all the money been made?
No way!
After a great first half, a lot of essential commodities have gone into consolidation mode, which is very normal and expected. This is the typical tell-tale phase that comes before the next big price increase.
Right now, the commodity markets are being affected by two things. On one hand, demand is booming as economies recover from the coronavirus pandemic. On the other hand, there are not enough supplies to meet this demand because of geopolitical factors.
So far this year, commodity prices have soared to new heights, with 50% of the world’s production from Aluminium, Copper, Cobalt, Nickel, Lithium, Palladium, Platinum, Uranium, Zinc and Rare Earth metals being forced offline.
As the colder weather starts to set in, energy prices are expected to rise as well, making it even more expensive to produce essential commodities. This will lead to further production cuts globally, as well as closures of mines and refineries. Shipping costs will also increase, leading to a major price squeeze in the near future.
