The rising prices of gold, oil and copper mean commodity funds have seen some serious growth over the past few years; Nick Scarrett, head of savings and investment at Fair Investment Company, says he sees commodities ‘gaining further ground’ in 2011.
“Commodity funds have had a good number of years, and in 2010 investment headlines were dominated by the huge rises in value of gold, oil and copper.
“Many economists see commodity prices gaining further ground in 2011 as above average global GDP bolsters demand, led by the particularly commodity-intensive emerging market economies - China and India have 2011 GDP predictions of 9.0% and 8.7% respectively.
“Therefore the combination of growing demand and finite resources should lift prices further.
“However any faltering in the emerging market economies, or an increased threat of a global double dip recession, however unlikely, could have a negative impact on prices.”
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