Commodity investing the antidote to the Age of Scarcity – by James Cooper (Northern Miner – August 18, 2023)

Broken supply chains, geopolitical tensions, war, inflation, rising energy costs, food crisis, droughts, famine, depleting mines. Welcome to the 2020s! The age of abundance is dead. The patterns defining this decade suggest more volatility is on the way, especially in the things that matter most — food, energy and shelter.

It’s why investors should be focusing on commodities. A perfect storm of tight supply that spans minerals, oil, gas, food and water is approaching. The modern world has been spoiled with years of cheap and plentiful supply. But that’s set to change.

Decades of underinvestment in the Old Economy means we are embarking on a new era of shortages. Mines are being depleted without replacement reserves in sight. Oil, gas and groundwater deposits are turning into giant underground voids. Global crop production is declining alongside severe droughts and war in the Northern Hemisphere.

All this while the planet adds around 1 billion people every decade. And all this while humanity embarks on its most ambitious project yet: Ending its 100-year reliance on fossil fuels. Demand for commodities is not going to stay still in the years ahead. It will surge.

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