FYI: This year has been disappointing for commodities, but some of 2018’s laggards, like gold, copper, corn, and soybeans, may be 2019’s leaders. In one case, a leader from 2018 could become a laggard in the new year.
“With political issues such as Brexit and the ongoing trade dispute between the U.S. and China, there are now a number of new opportunities that have opened up for 2019 for investors to turn to,” says Mihir Kapadia, chief executive officer of Sun Global Investments.
Among them is gold, which has underperformed in the last few years and fell by roughly 4% in 2018 through as of Friday afternoon. One of the main culprits was rising interest rates. Higher rates make interest-bearing instruments more attractive relative to gold and increases the cost of storage.
Regards,
Ted
https://www.barrons.com/articles/gold-and-copper-laggards-in-2018-could-lead-commodities-in-2019-51544813842?mod=djem_b_Weekly barrons_daily_newsletter
