Commodities has become a very important part in everyone’s asset allocation. Commodities are as per definition a raw material or primary agricultural product that can be bought and sold, such as copper or coffee. It is a basic good used in commerce that is interchangeable with other commodities of the same type.

According to a World Bank study, global commodity markets are being reshaped in lasting ways as a result of COVID-19, the war in Ukraine, and the impacts of climate change. This transformation is likely to have profound implications for developing economies over the coming decades.

The transition to cleaner energy is likely to be challenging. Demand for metals necessary to build the infrastructure for renewable energy and to produce electric vehicles is likely to surge in the coming decades, driving up the price of metals and delivering windfall gains for countries that export them.

Electricity is a key component of modern society, and the price of electricity is a key factor for many other parts of the economy. Safe, reliable and affordable electricity is a fundamental building block for all modern societies. It provides the backbone for society’s social and economic well-being.

European wind and solar power output stands at 370GW as of 2021 and is going to grow to more than 750GW in the next ten years to come. Keeping also in mind the trend of phasing out of coal and nuclear, means electricity prices are more volatile than ever.

We at Eagle Consulting and Trading AG are eager to engage proactively in this mega trend and offer solutions to investors and producers at the same time.