Oil prices have just reached a two-year high, and demand for gas is skyrocketing as the economy fully reopens and the world gets back to normal. In fact, after a year or more of travel restrictions, quarantines, and worse, activity could increase sharply before the supplies of the two hottest commodities today increase enough to satiate the masses.
Dollar inflation has further caused other commodities to increase in value. Meanwhile, precious metals, among the most scarce commodities in existence, have seen a healthy retrace and are ready to soon soar again. Here’s all the information you need about these assets and how to trade them effectively on PrimeXBT.
Why Are Commodities Suddenly So Hot?
The onset of the COVID pandemic caused widespread lockdowns and turned several industries upside down. The impact is still felt today and will be for years to come.
Not only did stimulus money debase the dollar and disrupt the world of finance, but due to logistical issues, staffing problems, and supply chain challenges, the normal balance between supply and demand in commodities has gone haywire.
Combined with consumers having more money to spend due to stimulus, but no supply to spend it on, the price of anything related to these commodities has been skyrocketing. During the last year, building materials such as copper, lumber, and steel saw an enormous rise due to demand for new homes and construction projects. However, with the economy fully reopening, another wave of commodity growth is about to begin as capital rotates around.
Burning Demand For Oil And Gas
When the lockdowns first began and travel restrictions went to the extreme, demand for oil plummeted and so did prices. Oil fell to negative prices in the insane market volatility at the time.
Today, oil prices are the highest in two years even without a full reopening, and should see sustained growth for several years. With businesses back open fully more electricity and heating is necessary for normal operations, also fueling natural gas demand.
These commodities are ready to rally hard, and the strength of any upside could be amplified by the continued debasement of the dollar. With the stock market running out of steam, and currencies in a death spiral, commodities are where growth could be over the next decade or more.
Inflation Fears To Drive Capitals To Gold
Inflation fears are rising and a sudden spike in the consumer price index suggests that it is about to spin out of control. Gold’s bull market was put on pause by Bitcoin and a return to risk appetite brought on by stimulus spending.
But that same stimulus spending has also caused a catastrophic drop in the value of the dollar, prompting investors to worry about where to store value and hard earned capital. Although gold has struggled to make new highs after breaking its former record last year, the precious metal is about to remind the world why it is and always has been considered the standard.
Silver To Thrive Amidst Green Industrial Usage
While gold’s bull market has been on hold, silver’s never even started. But that will soon change. In addition to the same inflation fears, silver has a green future on its side. Silver is used for all kinds of renewable energy technologies, which is quickly becoming a major political topic.
Silver also has WallStreetBets on its side, hoping to squeeze the hedge funds shorting the metal market. Silver bars, bullion, or coins are all in high demand, fetching a premium or completely out of stock. Soon, the price will reflect the incredible value that silver provides.
Trade CFDs On Hot Commodities
There is no doubt commodities are hot right now, but none are hotter than those found on the award-winning margin trading platform PrimeXBT. The ability to trade gold with CFDs alongside silver, stock indices, forex, and cryptocurrencies is possible under one roof with PrimeXBT. Traders can also long or short the current market volatility while it still lasts.
The platform itself is in high demand, seeing rapid growth in user base and trading volumes over the last few years since its inception. Even though demand is high, on PrimeXBT, there’s never a supply shortage on advanced trading tools. Take advantage and get into position today before commodities prices and inflation take off like never before and never look back.
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