Commodities could sizzle again in 2010 if global growth returns. They could offer the alert investor, ever ready to track key changes real-time, a happy hunting ground
Madan Sabnavis, Chief Economist, National Commodity & Derivatives Exchange.
His call: Global recovery will boost demand for metals, crude oil and agricultural commodities.
His investment idea: A layman should take a long-term view to reduce risk; non-farm products are easier to track over the long run.
The other set of factors is product specific in the sense that one has to choose the product to invest just like the individual scrip in the equity market. The moot question is which are the ones that would provide high returns on investment? Again, this is not an easy one to answer as individual product prices would be driven by their own fundamentals which have to be analysed individually. The value of the dollar is important for gold while US stocks of crude will continue to provide hints on the price. Crop prospects can never be known in advance in the country or the rest of the world.
(This story appears in the 22 January, 2010 issue of Forbes India. To visit our Archives, click here.)