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''Top Commodities to Invest in July 2020''

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rohit ch
''Top Commodities to Invest in July 2020''

The Coronavirus has impacted the financial market adversely. Due to COVID-19, major financial markets such as the commodity market have seen a very significant crash and downward trend.

Due to this, the whole financial market is experiencing a bearish market trend. When the market experiences prolonged price decline, it is termed as a bearish market. Investors are also witnessing the bearish trend in the financial commodity market.

The oil and metal industries are seeing a sharp fall in prices. They are also experiencing a fall in demand and supply.

For some traders, it is a situation where one needs to avoid investing. For some smart traders, it is a situation to make profits and the opportunity to improve their portfolio. In this article, we will list some commodities to invest in July 2020.

Top Commodities To Invest in July 2020

Copper

Copper looks to be a promising investment instrument right now. The copper is mainly used in wire and motor making industries as this metal corrodes less and is a great conductor. Copper is best suited to be used in the sustainable energy segment.

. It is best-suited metal for making photovoltaic cells and wind power generators.

Market analysts have forecasted that there will be an increase in the average price of copper in the coming months. They have predicted a growth of $6,214 a ton as opposed to the current $5,725. That is an 8.5 per cent increase in prices of copper.

Oil

Oil is still the best investment despite the panic situation in the oil markets. Barclays has predicted that the global demand for oil will increase by 1.4 million barrels per day. They said that the additional demand for oil would come from India and Latin America.

Steel

The steel market currently seems to be recovering from market loss. ArcelorMittal, the biggest steel company in the world, has quoted that they expect a 1–2 per cent increase in demand. People who are looking to make a quick profit should avoid steel as an investment. Steel is suitable as a trading instrument for the investors, who are looking to make mid and long term investments.

Gold

Gold is the most popular and most sought out investment instrument in the commodity market. In the coronavirus situation, gold is benefitting. Its prices grew by 18.3 per cent between March and May 2020, and it reached USD 1,736. More and more investors are turning to the metal as a safe-haven asset. As the other market is seeing a bearish trend, gold markets are experiencing a bullish trend. Gold Interest rates are remaining very weak and negative. Gold is still an excellent choice for investments.

Palladium

Palladium is the most used metal in the car industry. In the automotive sector, it is the material for the catalytic converters

. These converters remove pollutants from the exhaust gases that come out of car exhaust pipes. Under COVID-19 pandemic prices of palladium slumped below USD 1800. But by may the prices have started to recover. It has recovered from USD 1800 to USD 1950.

The reason why one should invest in it is that now most of the car makers have reopened their business. The car sales have also increased. The financial expert has also anticipated that prices of palladium will rise to USD 2300, which is entirely possible if one goes by the immense recovery.

Silver

One should consider adding silver to their investment portfolio because the gold-to-silver ratio still stands at 102. The industrial demand for silver has also increased. Many factories that consume silver are reopening after the lockdown. Industries like electronics, car making and solar panels are the primary consumers of the silver commodity. Silver prices gained seven per cent in May and are continuing towards the rising path. More and more experts forecast that the demand for silver will rise.

Base metals

The common metals used in commercial and industrial applications, like construction and manufacturing, are base metals. These metals are relatively inexpensive, and their supplies are usually stable. One can find the base metals around the world.

The experts quote that the demand for the base metals will remain stable in the domestic market of the country. Having base metal in your portfolio can safeguard it from soaring inflation.

Investing directly in base metals is considered not to be an appropriate way of investing. Instead, one should invest in stocks of base metal companies. Etf or the exchange-traded fund is also a right way of investing in base metals.

Conclusion

If you are looking for more options other than mentioned above, one can consider investing in platinum, lithium, cotton, and food products such as coffee, corn, oats, wheat, soybeans, and sugar. However, as a piece of advice, we would suggest consulting a financial advisor and broker like ETFinance before investing

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