Lucrative commodities to invest in for 2025 market predictions
Investing in commodities in January-April 2025 saw some fascinating movements, with cobalt, coffee, and gold leading the pack as the most profitable choices. According to a report by RIA Novosti, data from the Intercontinental Exchange (ICE Futures) in London and the Shanghai Metals Exchange pointed to these three as the top earners.
Cobalt prices skyrocketed by nearly 39%, making it an appealing investment. This versatile metal is used extensively in steel production and electric battery manufacturing. Gold didn't lag behind, with prices increasing by 25.6%. Other significant gains were observed in steel (+22.3%), rhodium (+18.1%), and copper (+15%).
In the agricultural sector, Arabica coffee saw the most significant price increase in 2025, rising by 25.8%. Soybean oil shot up by 21.4%, while wheat on the American exchange climbed 11.1%.
Orange juice faced the sharpest price drop among all commodities, dropping a steep 45%. Potatoes also took a hit on the European exchange, falling by approximately 43%.
Gold prices climbed to a new historical high of $3,504.2 per ounce previously.
Analysts attribute this shift in investments to the trade war initiated by U.S. President Donald Trump and his criticism of Federal Reserve Chair Jerome Powell. With tensions escalating, investors are favoring safe-haven assets. They perceive the Fed's independence as threatened by Trump's criticism, which leads to a decrease in the dollar's value, making gold more attractive.
Earlier, a proposal was made in the Russian State Duma to annually index tax deductions.
The expanding trade war and associated economic uncertainty pushed investors towards safe-haven assets like gold. Gold ETFs, offering liquidity and a means to track gold prices without storage, were popular choices. The UAE, with its tax-free trading benefits, also saw gold as a favorable investment, given its role as a hedge against inflation and market volatility.
While monetary policy disputes did not directly affect gold prices during this period, tensions between Trump and the Fed and the potential for higher inflation boosted gold's appeal as an investment. Its volatility and surges throughout this time highlight its function as a hedge against economic uncertainty.
- With the expansion of the trade war and economic uncertainty, investors in personal-finance and business sectors showed a keen interest in investing in safe-haven commodities like coffee in April 2025, given its potential as a hedge against market volatility.
- The Financial Times reported a significant increase of 25.8% in Arabica coffee prices in 2025, making it an attractive choice for investors seeking to diversify their portfolios.
- In the global finance industry, the Shanghai Metals Exchange's data revealed that, alongside gold, coffee was among the top commodities with the highest gains in the first half of 2025.
- With the ongoing trade war and concerns over potential higher inflation, there was a notable decrease in the value of the dollar, leading to a surge in the demand for commodities like coffee as investments.
- As investors in April 2025 strategized their personal-finance and business ventures, they took note of the commodities market and demonstrated a particular interest in profitable choices, such as coffee and other safe-haven assets, in light of escalating global tensions.
