BARCLAYS: 2016 could end up being the best year ever for commodities funds
PA Images
Investment flows of $3.2 billion (£2.4 billion) in last month mean that January-August inflows stand at $54 billion - an all-time high for the first eight months of any year, according to a report by Barclays.
2009 set the record for the best full-year for investment inflows with $71 billion, but that "target is now clearly in sight" for 2016.
"At $54bn, inflows so far in 2016 are now ahead of the previous best ever year in 2009," Barclays analyst Kevin Norrish said in a note to clients on Thursday.
"It would need a huge collapse over the remainder of this year for investment flows to turn negative on an annual basis, so it now looks highly probable that 2016 will mark the end of three consecutive years of net withdrawals from commodity investments," he said.
Gold is the most popular investment this year, on its own accounting for half of the total investment flow into commodities, according to Barclays.
"Uncertainty about the financial sector and global growth and rising political risks seems likely to support continued flows into the sector," the report said.
Here is gold's rise in the eight months to August this year:
Investing.com
It is an impressive turn-around for a sector that has been on a roller coaster ride. 2015 was a disaster for commodities, led by China's stock market volatility and the prospect of central bank interest rate rises.
Here is the chart, courtesy of Bank of America Merrill Lynch of how the year started:
Bank of America Merrill Lynch
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- A centenarian who starts her day with gentle exercise and loves walks shares 5 longevity tips, including staying single
- 2 states where home prices are falling because there are too many houses and not enough buyers
- "To sit and talk in the box...!" Kohli's message to critics as RCB wrecks GT in IPL Match 45
- 7 Nutritious and flavourful tiffin ideas to pack for school
- India's e-commerce market set to skyrocket as the country's digital economy surges to USD 1 Trillion by 2030
- Top 5 places to visit near Rishikesh
- Indian economy remains in bright spot: Ministry of Finance