"Commodities will gain in 2011" (2010-12-28)
Commodities have beaten stocks and bonds for the second year in a row. The benchmark Standard & Poor’s GSCI gauge gained 20% outperforming the 9.1% advance of the MSCI World Index of stocks and 5.3% return on a Bank of America Merrill Lynch index of Treasuries. Last year S&P GSCI Index added 50%, MSCI World Index rose by 27%, while US Treasuries declined by 3.7%.
The survey of more than 100 analysts, traders and investors conducted by Bloomberg shows that silver, that has a wide industrial implication, will lead the gains in commodities jumping by 37% next year. Zinc, this year’s worst-performing metal, is expected to appreciate by 21%.
According to Bloomberg data, global stocks are still about $11 trillion below the record $62.6 trillion of market capitalization reached in October 2007. Over the same period, commodity assets under management gained about 80% to $354 billion. Barclays’ strategists expect that these assets will attract a total of $60 billion in new money this year, the second most after 2009.
Specialists at Goldman Sachs Group Inc. suppose that commodities which China lacks will gain the most – that are oil, copper, cotton, soybeans and platinum. On December 13 the bank forecasted 18% advance in raw materials in a year, led by a 28% gain in precious metals.