Stocks and Shares

The commodities supercycle is 'not dead, just resting'

Great buying opportunities for commodities investors

Chairperson and chief executive of CEF Holdings, Warren Gilman, says markets are ill-advised to sell stocks, bonds and commodities all at the same time and that the 'knee-jerk' reactions to recent comments by Federal Reserve chairperson Ben Bernanke and Chinese economic data will provide great buying opportunities for commodities investors.

He spoke of gold specifically, and recommended "to look in the neighbourhood of $1 200 – $1 250 as a buying opportunity."

Gilman had recently returned from a mining conference in Barcelona, where CEOs of mining giants such as Glencore Xstrata remained committed to holding off on big, expensive new projects.

Putting large mining projects on ice is a "self-serving" move, he explained, as the delays will reduce supply and eventually drive prices up once again.

"The commodities boom is not dead, it's just resting."

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Issue 42