New Commodity Investment To Make In 2015 And Beyond It’s Neither Gold, Oil Or Silver
Mon, Dec 30, 2013
All of the major commodities have been sliding. Gold and silver have been leading the way down for more than two years. Oil, agriculture commodities, and copper have already started to follow the downturn.
But the downtrend in commodities is not true for all commodities. In fact, some commodities investments are going up precisely because others are going down.
This commodity has done so well over the past few decades, it’s priced has increased so consistently (it even went up in 2008!), it is now setting new all-time high prices while the rest of the commodity investments are turning sour.
As you’ll see over the next few minutes, this trend should continue well into the future. Set more new highs in the years to come. And make Contrarian Investors some excellent returns in the months and years ahead.
Investment Strategies Commodity Market
Top Commodity Investment for 2015 Revealed
I’m talking about chicken.
I know what you’re thinking. Come on Andrew, chicken?
The chart below, however, shows chicken prices over the last 30 years have risen consistently:
As you can see, chicken prices have had a solid run over the years.
In all, chicken prices are up about 150% from 1980.
Granted, that’s far behind the returns on investments from stocks, bonds, gold, real estate, and inflation.
The upturn acceleration started in 2007 and now it looks like chicken prices will continue to move up.
But that’s only half the story for the top commodity investment of 2015. There’s another element that makes this much more exciting.
The exciting part for investors is that while chicken prices are on the rise, the costs of raising chickens are declining.
In the livestock business the number one cost is always food for the animals.
iPath Pure Beta Grains ETN (WEET) is a great barometer of what’s happening in the grain markets. The ETN holds 100% grain commodities. Its top holdings are corn, wheat, and soybeans.
It is down 17% for the year. That means the major cost of raising chickens, feeding them, is falling.
The combination is a great one for chicken producers.
Rising Prices + Lower Costs = Big Profits
Again, the situation is simple.
We are in a long-term bull market for chicken prices. In commodities, price trends can last decades. They rarely turn. So we should expect the chicken price trend to continue going up.
Meanwhile, the costs of producing chickens are falling.
That means wider margins and more earnings for chicken producers. The two most important factors for driving stock prices higher and making a great commodity investment for next year.
The top chicken-producing company stocks are Sanderson Farms (SAFM), Pilgrim’s Pride (PPD), and Tyson Foods (TSN).
These are the leading chicken producers in the country. All of them should do exceptionally well as grain commodity prices continue to correct and chicken prices rise.
The best commodities investments are usually very simple ones to understand. The ongoing chicken boom is no different.
The Group of Big Investors in United States.
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