Commodities Outlook For 2021

commodities outlook

Our commodities outlook for 2021 is strongly bullish for some select commodities. 

Commodities have been extremely volatile, and most of them went through a recovery period out of the Corona crash lows. The only exception has been gold and silver. No surprise, as we identified the start of the new gold bull market back in the summer of 2019. Our new gold forecast is bullish for 2021, but gold is not our top commodity for 2021, nor is silver our top pick as per our silver forecast 2021. We believe that the following three sectors will provide huge opportunities in 2021, however timing will be crucial for success: platinum, lithium (similarly, also cobalt), pot stocks (considering this to be a commodity). Our commodities outlook is another great piece in our series of 2021 market forecasts.

Platinum looks really good here as we enter 2021.

As said in our piece Which Precious Metal To Buy In 2021 we consider platinum our top precious metal pick for 2021. This is what we wrote:

Platinum is on the rise, and it is trying to break above 4 year highs now. This is attempt #4 to break out to a new bull market. We believe it is a matter of time until platinum breaks out. And presumably early 2021 we will see the breakout confirmation. This chart clearly suggests that the upside potential in platinum in 2021 is some 40 to 50%. We would not be surprised to see platinum peak around 1500 USD / oz ‘somewhere‘ in 2021.

The way to invest in the platinum trend is the next one that comes up. And we would warrant investors to be cautious. Many ETFs cover much more than just platinum. There are ETFs covering the platinum and palladium price, and we are not as bullish on palladium as we are on platinum.

There are not a lot of pure play platinum miners. But the ones that are out there, with good financials and a strong correlation with the platinum price, are the ones we desire to buy and hold in 2021.

Yes, in our Momentum Investing portfolio we already identified our top pick. And it’s a matter of time until we flash a buy alert on this top platinum miner. Upside potential: 2x to 3x in 2021.

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Disclosure: Enjoying our work? We invest in broad stocks as well as commodities in our Momentum ...

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