28 Aug 2019
Commodity Price Super Cycle: Resources
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
This is a real challenge for humanity because the planet wide population is expected to increase from 7.7 billion today to 9.7 billion by 2050.
As incomes rise in the emerging World this adds to the number of people eating meat (soft commodities) and increases the need for more buildings, roads, transport and utilities (hard commodities) which is all bad news for the environment.
The attached chart points to the end of the current price super cycle in hard and soft commodities but it is difficult to believe given that humanity will add another 2 billion human beings to the planet is just the next 30 years.
Thinking forward, it is more likely that the current price falls reverse and the super cycle climbs much higher because earth’s resources are not infinite.
Click for chart.
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