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๐จ๐›๐จ๐ข ๐ข๐ง๐ฏ๐ž๐ฌ๐ญ'๐ฌ ๐–๐ž๐ž๐ค๐ฅ๐ฒ ๐ƒ๐ข๐ ๐ž๐ฌ๐ญ

๐€ ๐‚๐จ๐ฆ๐ฆ๐จ๐๐ข๐ญ๐ฒ ๐›๐ฎ๐ฅ๐ฅ ๐ฆ๐š๐ซ๐ค๐ž๐ญ ๐š๐ง๐ ๐ง๐จ๐ฐ ๐ญ๐ก๐ž ๐ฌ๐ฅ๐ฎ๐ฆ๐ฉ ๐จ๐Ÿ ๐ฅ๐š๐ฌ๐ญ ๐ฐ๐ž๐ž๐ค(๐ฌ). ๐“๐ก๐ž ๐ฆ๐š๐ซ๐ค๐ž๐ญ ๐ž๐ง๐ฏ๐ข๐ซ๐จ๐ง๐ฆ๐ž๐ง๐ญ ๐ž๐ฑ๐ฉ๐ฅ๐š๐ข๐ง๐ž๐

The US Federal Reserve is to blame for the recent price slump in commodities. At their most recent meeting, the monetary watchdogs were more confident about the U.S. economy than expected. ๐“๐ก๐ž๐ฒ ๐ฌ๐ข๐ ๐ง๐š๐ฅ๐ž๐ ๐š๐ง ๐ข๐ง๐ญ๐ž๐ซ๐ž๐ฌ๐ญ ๐ซ๐š๐ญ๐ž ๐ญ๐ฎ๐ซ๐ง๐š๐ซ๐จ๐ฎ๐ง๐ ๐š๐ฌ ๐ž๐š๐ซ๐ฅ๐ฒ ๐š๐ฌ ๐Ÿ๐ŸŽ๐Ÿ๐Ÿ‘ ๐ข๐ง๐ฌ๐ญ๐ž๐š๐ ๐จ๐Ÿ ๐š ๐ฒ๐ž๐š๐ซ ๐ฅ๐š๐ญ๐ž๐ซ. ๐ˆ๐ง ๐š๐๐๐ข๐ญ๐ข๐จ๐ง, ๐…๐ž๐ ๐‚๐ก๐š๐ข๐ซ๐ฆ๐š๐ง ๐‰๐ž๐ซ๐จ๐ฆ๐ž ๐๐จ๐ฐ๐ž๐ฅ๐ฅ ๐ข๐ง๐๐ข๐œ๐š๐ญ๐ž๐ ๐ญ๐ก๐š๐ญ ๐š ๐ซ๐ž๐๐ฎ๐œ๐ญ๐ข๐จ๐ง ๐ข๐ง ๐ญ๐ก๐ž ๐›๐ข๐ฅ๐ฅ๐ข๐จ๐ง๐ฌ ๐จ๐Ÿ ๐๐จ๐ฅ๐ฅ๐š๐ซ๐ฌ ๐ข๐ง ๐ฌ๐ž๐œ๐ฎ๐ซ๐ข๐ญ๐ข๐ž๐ฌ ๐ฉ๐ฎ๐ซ๐œ๐ก๐š๐ฌ๐ž๐ฌ ๐ฐ๐š๐ฌ ๐š๐ฅ๐ซ๐ž๐š๐๐ฒ ๐›๐ž๐ข๐ง๐  ๐๐ข๐ฌ๐œ๐ฎ๐ฌ๐ฌ๐ž๐.

The consequences on the market: Yields on U.S. government bonds shot up sharply.

Since fixed-interest securities are thus becoming more attractive for investors, the price of gold went down in return. In contrast, the U.S. Dollar was much stronger after Powell's comments. Since $GOLD is traded on the world market in the American currency, an increase in the exchange rate makes the precious metal more expensive for many interested parties and thus slows demand. The same effect with other precious and industrial metals. Copper, for example, fell 8.6 percent last week, the biggest weekly loss since the start of the Corona pandemic.

This week, some calm returned to the markets and prices of some commodities recovered. Many basic commodities, such as copper, soybeans and iron ore, have risen sharply in price over the year despite recent price declines. This has already led some market observers to say that we are experiencing the beginning of a new supercycle. This refers to a prolonged phase in which commodities become more expensive across the board.

๐Š๐ž๐ฒ ๐ซ๐จ๐ฅ๐ž ๐จ๐Ÿ ๐‚๐จ๐ฉ๐ฉ๐ž๐ซ

"$COPPER is the new oil", is how analysts at DZ Bank and Jeff Currie, chief commodities analyst at investment bank Goldman Sachs, sum up their optimism. In order to achieve climate neutrality, there is only one way: copper. No other copper conducts electricity so well, so it has great strategic importance.

Almost certainly, the transformation of major economies toward sustainability will drive up demand for the reddish metal. An e-car, for example, contains five times as much copper (60 to 83 kilograms) as a vehicle with an internal combustion engine. A wind turbine with an output of three megawatts even contains up to 4.7 tons of the industrial metal.

According to estimates by the International Energy Agency, the market for critical raw materials such as copper, cobalt and some rare earths would have to grow sevenfold between 2020 and 2030 if the global community wants to achieve climate neutrality by 2050.

The demand for raw materials will increase enormously. For example, building platforms for offshore wind farms and bringing electricity ashore via massive cables -120 kilos in weight per meter-will require huge quantities of zinc, cement and copper.

๐’๐ข๐ฅ๐ฏ๐ž๐ซ ๐Ÿ๐จ๐ซ ๐ฌ๐จ๐ฅ๐š๐ซ ๐ž๐ง๐ž๐ซ๐ ๐ฒ

$SILVER, on the other hand, is in demand for the expansion of solar energy. According to IEA forecasts, alternative energy sources will grow by an average of 3.2 percent per year. The increase in solar energy will be particularly strong at eight percent. Silver is indispensable in the manufacture of solar panels because of its very high conductivity. Photovoltaic-based silver demand has risen by a good eleven percent annually since 2014. In addition, components that rely heavily on silver are becoming important for the expansion of a global 5G network.

๐ˆ๐ง๐Ÿ๐ฅ๐š๐ญ๐ข๐จ๐ง ๐ซ๐ž๐ฆ๐š๐ข๐ง๐ฌ ๐š๐ง ๐ข๐ฌ๐ฌ๐ฎ๐ž

In addition to the mechanics of demand and supply, there is a third major force acting on commodities: inflation trends, like I pointed out in my last post. ๐“๐ก๐ž ๐๐š๐ง๐ค ๐จ๐Ÿ ๐€๐ฆ๐ž๐ซ๐ข๐œ๐š ๐ก๐š๐ฌ ๐œ๐š๐ฅ๐œ๐ฎ๐ฅ๐š๐ญ๐ž๐, ๐ญ๐ก๐š๐ญ ๐Ÿ๐ซ๐จ๐ฆ ๐Ÿ๐Ÿ—๐Ÿ“๐ŸŽ ๐ญ๐จ ๐Ÿ๐ŸŽ๐Ÿ๐ŸŽ, ๐ญ๐ก๐ž ๐œ๐จ๐ซ๐ซ๐ž๐ฅ๐š๐ญ๐ข๐จ๐ง ๐›๐ž๐ญ๐ฐ๐ž๐ž๐ง ๐œ๐จ๐ฆ๐ฆ๐จ๐๐ข๐ญ๐ข๐ž๐ฌ ๐š๐ง๐ ๐ข๐ง๐Ÿ๐ฅ๐š๐ญ๐ข๐จ๐ง ๐ฐ๐š๐ฌ ๐จ๐ฏ๐ž๐ซ ๐Ÿ•๐ŸŽ ๐ฉ๐ž๐ซ๐œ๐ž๐ง๐ญ. In general, it can be said that prices of basic commodities perform well during periods of high inflation.

The scenario of higher inflation is currently the subject of hot and controversial debate. It cannot be ruled out. With the central banks' policy likely to remain expansive at present, the money supply will continue to expand. Inflation will therefore remain an issue. Should the inflation rates increase strongly, this would favor in particular the quotations of precious metals. I currently see a good investment opportunity here. Gold and silver have been somewhat neglected in the current commodity rally and are not trading at all-time highs.

Have a pleasant week ahead!


$PSLV$SCCO (Southern Copper Corp)$EURUSD

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