| Commodity prices can be very volatile, oftentimes more so than just about any other asset class. These large price swings, which have been particularly evident in recent years, have given commodities their reputation for high risk. Those investors who lack a large buffer of disposable risk capital are repeatedly advised to steer clear.
But for those investors who can bear the risk, and who look to invest in commodities as an inflation hedge, there is some evidence to suggest that commodity prices move in long term "supercycles," which play out over years and even decades. By observing and understanding these movements, these investors may be able to be more strategic in their approach...............................................Full Article: Source
|