The global population explosion: The United Nations (UN) estimates that the global population will grow to about 9 billion people by 2050. Significant population growth translates into greater global demand for commodities. This large population growth is a key driver for the increasing demand for commodities, which will continue to put upward pressure on commodity prices.
Urbanization: Sixty percent of the world's population is expected to live in urban areas by the year 2030. Urbanization is highly significant for commodities because people who live in urban centers consume a lot more natural resources than those who live in rural areas. Industrial metals such as copper, steel, and aluminum are going to be in high demand to construct apartment buildings, schools, hospitals, cars, and so on.
Industrialization: A new wave of industrialization is taking place in the 21st century; it's transforming a large number of developing countries into more industrialized countries, and raw materials are fueling this transformation.
Safe haven for investments: Investors view certain commodities, such as gold and silver, as reliable stores of value, so they flock to these assets when times aren't good. When currencies slide, nations go to war, or global pandemics break out, you can rely on gold, silver, and other commodities to provide you with financial safety.
A hedge against inflation: One of the only asset classes that benefits ...
With Safari, you learn the way you learn best. Get unlimited access to videos, live online training,
learning paths, books, interactive tutorials, and more.