Large European Pension Funds Are Extremely Bullish On Commodities

Commodities is a relatively broad category that covers items like corn, wheat, oil, soybeans and sugar. Like gold and silver, commodities are physical assets that can’t be created indefinitely unlike cash. 

They’re also relatively recession proof since wheat and soybeans will always be needed to make common food products. Due to recent events like the war in Ukraine, wheat prices climbed to as high as $11 per bushel.

As a result, “Some of Europe’s largest pension funds are investing billions of euros in volatile commodity markets, a new investigation has found,” an EU Observer article noted.”

Other commodities like gold and oil have seen higher demand over the last year. Oil has greatly increased, since a barrel of oil is around $88, a significant increase from negative prices a few years ago. 

With futures contracts, you can profit in any market and get quick gains with high liquidity. If you have a higher risk appetite, then you can use margin to magnify your gains on commodities.

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