A New Commodity ‘Super-Cycle’ Is Here – What’s Next For Prices?

Phil Carr
Published: Feb 15, 2021, 09:41 UTC

With metal prices hitting the highest in years and oil trading well above $50 a barrel – a new commodity super-cycle is now firmly underway.


Everyone from Goldman Sachs to Bank of America have been calling for a bull market in commodities, since the turn of the year. JPMorgan is now the latest Wall Street bank predicting the start of a new commodities super-cycle in 2021.

JP Morgan noted in their latest report that “a long-term boom across the commodities complex appears underway and there could be big gains ahead for the entire sector”.

The new super-cycle will be driven by the post-pandemic recovery, massive stimulus spending, rising inflation, growth in China, more aggressive environmental policies and a deteriorating U.S dollar.

Last week, Platinum took centre-stage rallying to six-year highs. Platinum has outperformed its peers this year after spending most of 2020 lagging behind.

Platinum’s explosive rally also pulled sister metal Palladium higher, which is now up 70% in the past 12 months. Meanwhile Rhodium, which is like Platinum on steroids – has surged from $3,000 in February 2019, to a new all-time high of $21,000 in February 2021. That’s a phenomenal gain of 600% within the past two years.

Elsewhere, Copper prices hit their highest level since October 2012, whilst Oil soared past $60 a barrel for the first time in more than a year – up over 218% from the lows seen in April 2020.

And then there was Silver – which earlier this month hit $30 an ounce for the first time since 2013.

All in all, the evidence is mounting that a new commodity super-cycle is underway and this is definitely one of the hottest asset classes to watch in 2021.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Phil Carrcontributor

Phil Carr is co-founder and the Head of Trading at The Gold & Silver Club, an international Commodities Trading, Research and Data-Intelligence firm.

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