The persistent inflation narrative continues to fuel commodity prices. Discussing with colleagues about the potential for a supercycle in some industrial metals. How are you positioning in futures markets to capture or hedge against this? Beyond crude, which specific contracts are you monitoring?
I'm definitely on board with the supercycle idea for industrial metals. Copper and nickel seem to have strong fundamentals beyond just inflation. Looking at longer-dated futures to ride out short-term volatility.
Anyone considering precious metals as a hedge? Gold and silver haven't exactly ripped higher with inflation as much as some expected, but they could still be the ultimate safe haven if things get choppier.
While inflation is a factor, I'm a bit more cautious on a full-blown supercycle. Demand destruction can hit hard if prices get too high. I'm mostly focused on hedging my energy exposure rather than outright long positions in other commodities.
Good point on the hedging. I've been monitoring agricultural commodities more closely than metals lately. Grains, especially. Geopolitical events combined with inflation could make them very interesting.