Raw materials in 2024: state of the world

As inflation has skyrocketed worldwide and markets have become more volatile, while analyzing the behavior of raw materials has always been important, it has now taken on special importance. WITH inflation at an unstable point and uncertainty in markets around the world, Greater caution is necessary when choosing investments.

Today, there are many options to choose from, each offering different capabilities. Paying attention to this data is essential to have a base what will be the possible behaviors From the prices. In addition to creating an investment strategy for the rest of the year.

Natural gas is a growing commodity, but with risks

When it comes to raw materials, liquefied natural gas has become an attractive investment option for 2024. Deliveries of this commodity have been gradually increasing since 2016, since the opening of the first export plant in 48 countries. Last year, for the first time in history, the USA positioned itself as the largest exporter.

Currently, the global demand for LNG maintains a constant growth for this material. However, we must be careful when investing this year. Pressure is mounting from environmental groups over Biden’s pledge to phase out fossil fuel use. Management is evaluating new projects that could delay or stop the export of this material, which could affect its prices and demand.

Battery materials represent a worse prospect

On the other hand, battery metals are going through a difficult period. Raw materials such as lithium, cobalt and nickel fell last year, which reduced their costs. During 2023, average prices fell to US$139 per kilowatt hour. This year, the price is expected to drop by another $6.. While this is good news for consumers, investors will need to be very careful.

The cocoa sector recorded the greatest annual progress

In the agricultural industry, the cocoa sector has shown great growth despite everything. At the end of 2023. This raw material showed the greatest progress in 15 years, with contracts for this material up 61% in New York. Now as we enter 2024, it continues to show growth and is predicted to remain so until the end of the year.

On the other hand, investors are still waiting for the processing of precise data on the last three months of 2023. This report will give a clearer picture of the behavior of the cocoa tree and could define the future prices of this sectorr. For now, it is best to wait for more information before making any decisions.

Gold, a possible investment alternative for 2024?

The outlook for raw materials in 2024 is still quite uncertain and shows certain negative trends. That’s why many investors wonder if gold would be a better option. According to Thomas Bollinger, senior investment strategist at J. Safra Sarasin Sustainable AM, everything will depend on inflation.

He states that, in an inflationary environment, gold is a better investment alternative. However, if the market is positive, raw materials are more desirable. On the other hand, it is pointed out that gold remains the safer option, since it reduces the maximum investment loss. Likewise, in periods of uncertainty, investors often opt for this alternative, and thus its price rises.

Gold has long been considered a safe haven. There are many ways to invest in gold, some of which are direct purchases, also through ETFs or financial derivatives such as CFDs that can be traded on platforms such as Plus500 in Latin America, although these are leveraged products that represent risks that you must be aware of. .
Despite short- and medium-term fluctuations, generally speaking, gold has always had an upward trend.

It is expected that during these last weeks of January, relevant data on price behavior in the last quarter of 2023 will be published. will serve as a guide for this year’s investment decisions.