Commodity Bull Market Will Continue

Commodity Prices, Bull Market

A number of factors will contribute to the ongoing commodity bull market, including population growth (although that isn't the primary factor) and other changes that will ensure probably at least a decade or not more of commodity price surges.

Now along with population growth, the more significant reason commodity prices will increase are the emerging middle classes in China and India, and other smaller Asian countries.

After all, population growth won't significantly change things if people aren't able to afford food. Sure, you get the subsidized food, but that always is the basics to survive, never the higher margin food middle classes enjoy and can afford.

But, either way, population growth for general food stuffs, along with available funds from emerging market consumers will drive commodity prices for years to come.

"World population growth trends suggest massive numbers of new global citizens on the way -- citizens that are going to require essentials such as food, clothing and shelter," commodity ETF expert Doug Fabian said.

"For investors who want to ride this population wave, I offer you the PowerShares DB Commodity Index, an exchange-traded fund that seeks to track the performance of the Deutsche Bank Liquid Commodity index," he added.

Of course I've been writing about this for a long time trying to show you the reasons many commodities will be highly profitable. Jim Rogers has also contributed to that conversation, saying that commodities should be the top performing investment for years into the future.

Commodity prices in many cases have dipped because of the temporary economic slowdown, and no matter how long it takes to be dug out of it, eventually commodities will begin to rise again, and when they do, they could explode in price. Of course you can make money whether commodity prices rise or fall, but this makes pricing of them easier than when there's a lot of uncertainty, which over the long term there isn't: commodity prices overall will rise, and that's a surety over the long term.

If Commodity prices continue to lag, that could be a great buying opportunity as well, and could even add to the profits of investors going forward.

Commodity Prices, Bull Market