What's your take on commodity financial investment?

I believe they are the ones with ten bagger capacity – returns of 1000% and more within a rational space of time. Here the word sometimes is used as all too often, investments are abhorred due to a fair reason - there's a great amount of wisdom in the price of any associated market. But the market does get it wrong at times. At any point of time there are investments that should be to a great degree higher than their market price - an amendment will occur at some time or the other. In anticipation of the tide to turn, getting well before the crowd when the indicators are right is sane option.

That's exactly why the commodity financial investment market has been on my radar for some time now - here's a terrible performer that has performed sickly over the past two decades - adjusted for inflation the value of commodities investments during this period has declined significantly.

And let me ask you something - aside from small pockets (such as gold & oil) how much attention do you see general commodities getting? Do you see books about them when you peruse the investment section at your local bookshop? Do you hear your friends boasting about their most recent commodity financial investment? No - because at the moment, despite the fact that prices are now moving north with some conviction, commodities are still unloved...and if as I believe they will continue to rise, this could be the start of a longer term commodities bull run and a very good time to invest.

Did you know that commodities prices have been heading upwards, almost un-noticed for some time now? Coffee, copper, wood and sugar are just a handful of the commodities that have enjoyed between 40% to 80% price growth per year in recent times. The Case For Commodities Investment - A simple Question Of Growing Demand & Falling Supply.

The sophisticated investor understands one thing - whatever the current price of a product, it's price will ultimately correct to reflect the basic demand versus supply equation. Yes, we get bubbles - anyone that invested money in "Useless Dot Com PLC" around 2000 at a PE of about 967 will vouch for that. But ultimately, the market corrects itself - overvalued markets and companies come crashing down with an almighty thud. And undervalued markets and companies get re-rated.

Why do they get re-rated? Because the market understands that there is an imbalance. In the case of Useless Dot Com PLC the market realized that the company (which by the way is fictitious) was just sitting on some cash with some farfetched business model with no underlying demand for it's core business activity or product. The result is that the market valuation for Useless Dot Com PLC was trashed.

Both India and China are developing into global super-powers - and in order to do this, their level of consumption of commodities will be fierce and almost unsustainable over the next two decades.

Now is the right time to get involved with the commodity financial investment boom.