Commodity markets have been marking growth on the opportunistic rise in the commodity prices
. Tumbling stock markets are giving another reason to investors to consider and invest in the commodity stocks that can provide the basic security to the confused and terrified investors. Majority investors choose commodities as an investment option over stocks due to safety concerns.
Recent reports on the commodity markets reveal that the benchmark index for most commodities is stable. Upheavals in the share markets across the world have not been able to touch the rising commodity fortunes with the S&P GSCI index marking gains by nearly 1.6%. Majority of traders and investors are following this index in which 24 raw material stocks are listed.
The world markets have seen the record-breaking performance given by the metal commodities like gold and silver. Copper is another metal that is aspiring to touch the sky following gold and silver's rally. Copper fortunes have seen growth due to the increasing industrial production levels. However, the energy commodities like oil and natural gas have noticed a slump due to the snapping demands and declining levels of the consumer consumption of these commodities in the major consumer markets like the US and China.
As far as agriculture commodities are concerned, rising prices of essential foods are dominating consumer pockets and the news of the soon-to-come food recession has generated panic amongst consumers worldwide. Global economies are stressing on the importance of doubling production of the key foods consumed by the world; however, shifting weather conditions are acting as a biggest barrier in the production of these largely consumed agriculture commodities.
The US Labor Department revealed key information on the consumer and commodity prices in the month of September. According to this report, the US consumer prices have seen 1% rise in the annual timeframe. While, the consumer prices in the European region have gone up to 1.6%, slowing down from the last year's increase of 1.7%.
Commodities are seen as assets that provide protection in the times of economic crisis and increasing commodity prices seem to justify this belief.