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Comparison of the top 5 commodities over the three-year period 2019-2022
Over the past three years, the world has witnessed a remarkable change in the commodities sector due to factors such as the COVID-19 pandemic, trade tensions among major economies, and environmental challenges. In this article, we will take a close look at the behavior of the five major commodities, namely oil, gold, silver, wheat, and natural gas, and analyze how each of them performed over the three-year period 2019-2022. We will compare these commodities, examining their past performance and future prospects, in order to help readers better understand the commodities market and investment opportunities.
Saturday, 2 April 2022
How much have prices increased in the last 3 years from pre-pandemic to now?
In the last period we have seen a remarkable appreciation of commodities. How much have prices increased in the last 3 years from pre-pandemic to now? We’ll look at that in this analysis done on the following commodities:
- Gold
- Silver
- Crude oil
- Natural gas
- Wheat
From the following chart, we can see how the effect of the pandemic prompted investors to purchase commodities such as gold and silver as a safe haven asset to shelter themselves from a very uncertain and volatile period. On the other hand, gas and oil saw a sharp decline in prices during the first lockdown (the latter coming to lose about 80 percent since April 2019). On the other hand, one can see how since the beginning of this 2022 price rises for all 5 of these commodities have been particularly accentuated by Russia’s invasion of Ukraine.
Ultimately in the table we see how much commodities have appreciated over the past 5 years:
| Asset | Performance (3 years) |
|---|---|
| Gold | 112.75% |
| Silver | 111.3% |
| Crude oil | 62.82% |
| Natural gas | 56.44% |
| Wheat | 51.29% |
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Sign up for freeHow correlated are these five commodities? From the correlation matrix, it can be seen that they are all rather correlated with each other, with values close to 0, except for gold-silver, which are the most correlated pair.
Conclusion.
The rise in inflation we hear so much about these days is strongly linked to the price increases experienced by the 5 commodities we have just analyzed. We have seen how the price of wheat and gas has more than doubled in 3 years, with consequent repercussions on food and energy prices…in an endless spiral!
Disclaimer
This article is not financial advice but an example based on studies, research and analysis conducted by our team.
This article is not financial advice but an example based on studies, research and analysis conducted by our team.