We all know that the future is going to be a whole lot different than the present. While no one can predict how the global financial crisis will play out, one thing is for sure; there will be huge changes in the economy and financial system worldwide.
Therefore, this leads to the question – what commodities and products will be in high demand? Let’s look at several commodities that will go up in value during this period.
Gold will always have value to someone.
Gold is the universal symbol of wealth, and it’s recognized as a valuable commodity across the globe. When currencies begin to collapse, investors will flock to gold since it has some of the highest liquidity. This means that you can easily sell your gold and get cash in return. You won’t have to worry about being stuck with an item no one wants to buy.
Gold is also a good hedge against inflation because its value rises as the cost of living increases. It’s important to note that gold is not just for investors. It can be used for manufacturing or jewelry making, so even if you’re not an investor, you can still find a use for this shiny metal.
Gold and Silver has a high demand as an industrial metal.
Silver and Gold has a high demand as an industrial metal. It is used in jewelry and silverware, batteries, electronic components, and many other purposes. The main problem with silver is that it is a byproduct of mining for other metals, mainly copper, lead, and zinc. Many of the world’s large silver deposits are mined as a byproduct of these other metals.
For example, according to GFMS estimates, more than half of newly-mined silver in 2016 was a byproduct of zinc and lead mining. This means that if production declines for these metals, it will also lead to lower production of silver. This is the best time to get proper silver and gold investment advice from commodity consultation and gold experts to consider precious metals commodities during tumultuous economic periods, as these are stable investments that soar in value in tough periods.
However, this does not mean that silver prices will plunge since global stockpiles are low. When the U.S dollar falls, and inflation rises (as it always does after a financial crisis), precious metals prices soar.
Copper is a common but valuable metal.
Copper is used in everything from wind turbines and solar panels to household items like pipes, wires, and brass instruments. And humans have used the metal for thousands of years, and research suggests that demand for copper could skyrocket in the coming decades.
According to the International Copper Association (ICA), worldwide demand for copper is expected to exceed 34 million tonnes per year by 2027 — an increase of over 40% since 2018. While China has contributed substantially to recent increases in copper demand, the ICA believes that India and other developing countries will be responsible for much of the growth in the future.
Uranium is the most plentiful fissionable material in the world.
Uranium is still in high demand for nuclear power plants around the globe. There are current plans to build new reactors in China, India, Russia, France, and the United States due to increased demand for electricity from emerging economies such as China and India.
The nuclear industry also consumes large amounts of uranium through its fuel recycling activities, which produce a mixture of depleted uranium and plutonium (the latter of which requires further refining). More reactors will mean more demand for both fresh supplies and waste material that can be reused after reprocessing.
Wheat has a lot of uses and might become rare due to crop disease.
A big part of finding smart investments during an economic downturn is looking for assets that have a high floor. Wheat is a smart investment in times of economic uncertainty because it’s one of the most important food crops on the planet, and there will always be a demand for it.
In addition, wheat flour can also be used to produce bio-ethanol fuel, which could become very important if fossil fuels become very expensive or impossible to get. This biofuel can also be used as cooking fuel for those who do not have access to electricity or natural gas.
The good news is that these five commodities are likely not destroyed by the global crisis but instead will appreciate further during this period as investors take money out of other investments whose values may have been inflated at bubble levels.