Numerous factors suggest commodity prices are poised for a cyclical recovery this year.
First, commodities have underperformed in the past two years, restoring value to most. Also, artificial and temporary distortions keeping prices overextended have recently been eliminated.
The haven premium embedded in precious metals’ prices since the crisis of 2008 was dissolved in the past year, as demonstrated by the price of gold collapsing from almost $1,900 to about $1,200.
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