Investing in commodities could bring moderate returns to investors in 2021, according to experts from BofA Global Research, who see the potential for higher prices for copper, nickel and aluminum.
The victory over the coronavirus thanks to the emergence of vaccines and the subsequent recovery of economic activity amid budgetary stimuli will support demand for commodities linked to the economic cycle, especially for those whose stocks are limited, according to the review.
The average copper price, according to analysts' forecasts, will be $ 7,588 per tonne next year, and $ 7,625 per tonne in 2022.
Among the factors that will support copper prices, analysts point to demand from China and insufficient increase in production, predicting a small copper deficit in 2021.
The forecast for the average cost of BofA aluminum for 2021 is $ 2,000 per ton, for 2022 - $ 1,918 per ton, nickel - respectively, $ 13,704 and $ 17,250 per ton, zinc - $ 2,588 and $ 2,424 per ton, lead - $ 1,950 and $ 2,251 per ton.
Analysts predict the price of gold in 2021 at $ 2,063 per ounce, silver - $ 29.13 per ounce, palladium - $ 1,013 per ounce, platinum - $ 2,563 per ounce.
BofA experts expect iron ore prices to remain above $ 100 per tonne during the bulk of the first half of 2021, thanks to continued strong demand for ore from steel mills around the world, despite increased supplies from Brazil's Vale.
Stable activity in the steel sector is also expected to support global coal prices.