Natural Resources your portfolio needs

Commodities: Natural resources your portfolio needs - at Moneyweek.co.uk - the best of the week's international financial media.

China's insatiable appetite for commodities and an insufficient global supply of these commodities have helped fuel an impressive revival in the natural resources sector. A weak US dollar, which usually means a rise in commodity prices, has also helped. But with the considerable price rises seen within the sector over 2003 and speculation about the extent to which the steam may be running out of China's impressive economic expansion, many investors are questioning whether they have left it too late to jump on the bandwagon.

They haven't. Two key forces have been driving commodity prices higher - a surge in demand and restricted supply - and both look set to continue into 2004. Even in the worst-case scenario of a slowdown in the pace of economic expansion in China, analysts are forecasting strong GDP growth. Meanwhile, there are some really serious supply issues concerning the mining of base metals. Together, these factors point towards further investment opportunities in the sector, but identifying and capturing the best opportunities will remain key to outperformance.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.