Commodities will become the most successful asset class in 2023, providing investors with returns of over 40%, analysts predicted Goldman Sachs Group.
According to their forecasts, the Standard & Poor’s GSCI Total Return Index, which takes into account the price dynamics of 24 types of commodities, will grow by 43% next year. The indicator is up 24% since the beginning of this year, while the S&P 500 stock index is down 16%.
“While individual commodity prices have nearly doubled, the amount of capex in the commodities complex as a whole is disappointing,” wrote Goldman analysts led by Jeff Curry and Samantha Dart. – “This has been a major revelation of 2022: Even extremely high prices can’t create enough capital inflows and trigger supply growth to address long-term deficits.
The price of Brent crude oil will reach $105 a barrel in the fourth quarter of next year, copper will cost $10,500 a ton, and liquefied natural gas on the spot market in Asia will rise to $53.1 per million British thermal units (BTU), Goldman forecasts.
As of Wednesday, Brent is trading near $82 a barrel, copper is at $8,400 a tonne and LNG is at $33 per 1 million BTU.
