During 2020, commodity prices experienced significant volatility. The large declines and subsequent rallies were mirrored in other asset classes, notably equities. While one may explain higher equity prices due to lower interest rates and increased quantitative easing, the commodity rally is more difficult to explain, given low capacity utilisation rates in many economies and high levels of unemployment. However, there are good reasons to explain the commodity price rises and I expect that this trend is going to continue into 2021. I can easily see a situation where industrial metals, precious metals and even oil move substantially higher over the…

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