The hype about a supposed “super-cycle” at the start of the decade has been replaced by fears of a prolonged period of “secular stagnation” in commodity prices. As usual, the reality lies somewhere in between. We therefore believe that market sentiment towards commodities is now unduly pessimistic. Our view is that cheaper oil is here to stay and the prices of many agricultural commodities will remain subdued too. But the resulting downward pressure on inflation should help the recovery in the global economy, boosting the prices of industrial metals. Precious metals should also do well, although silver is likely to outshine gold.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services