Commodity prices can only go up

Rising commodities demand is being met with falling supply … and prices will ultimately head higher.

Indications that three of the world’s biggest economies – China, Japan and the US – are growing at a faster pace than forecast might be occurring at an inconvenient time for investors with a bearish view of the resources sector.

The issue is not so much about a sudden recovery, but the combination of moderate economic growth with continued supply cutbacks.

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