Commodities Overview For 2013

Online, April 2, 2013 (Newswire.com) - Commodities fell slightly out of favor in 2012, but as economies rebound in 2013 and funds flow out of bonds, Sonata Financial believes that commodities could experience an upswing. With the United States gaining steam, and China's apparent dodging of an expected economic slowdown, it is likely that 2013 will experience a commodities rally. A few of the notable commodities worth watching in 2013 are outlined below.

Silver: The spot price for silver is well below recent highs. After plummeting from its high of $48/ounce in 2011 it has fluctuated between $26 and $34 for the past year and shows signs of a 2013 rally. Often sought out along with gold as a hedge against inflation, silver also has the added benefit of increased demand for industrial uses. Though it isn't likely that silver will exceed its 2011 highs, a surge to more than $35/ounce in 2013 is very likely. Given its current trading range below $27/ounce, that conservative estimated appreciation would yield more than 30%.

Copper: Global copper production isn't keeping pace with an expected increase in construction in the United States and a massive demand from China. Sonata Financial analysts expect demand to exceed supply for the coming few years driving prices up in the near to mid-term.

Gold: Gold has dropped sharply since September of 2012, and a 2013 rebound to greatness is expected. Currently trading around $1580/ounce, analysts expect the favorite precious metal to rebound to near $1800/ounce.

Platinum: With supply issues shrinking surpluses of this precious metal and industrial demand increasing, platinum will likely make a modest run in 2013. Though it isn't expected to outperform many other commodities, $1750/ounce is very achievable.

Oil: Though there is a lot of debate on whether oil will go up or down in 2013, Sonata Financial analysis predicts modest gains near 10% by July of this year. The recent strengthening of the US dollar and robust economic growth predicted for 2013 will mean stronger demand and an oil rally.

Wheat: Many investors overlook agricultural commodities, but with increasing populations and food shortages commodities including wheat offer sound investments. 2013 could see wheat exceeding $9/bushel.

While all commodities are expected to go up as the global economy strengthens, each is also impacted by its own supply and demand dynamics. While commodities appear to present substantial growth potential for 2013, investors must be wary of the many variables that impact commodity prices and consult their financial advisor before allocating portions of their portfolios to commodities.