The global economy is experiencing a significant shift, with China leading the way in driving growth, according to VanEck CEO Jan van Eck. With positive manufacturing PMI in China and an overall uptick in the world economy, van Eck believes that investors should consider commodities as part of their investment portfolio.
VanEck’s firm has exposure to a range of commodities, including gold, energy, and copper, through its exchange-traded funds such as the VanEck Gold Miners ETF (GDX) and VanEck Oil Refiners ETF (CRAK). These ETFs have seen impressive gains of 10% and 9%, respectively, year to date.
Copper, in particular, has shown strong momentum, with a nearly 16% increase in value so far this year. Van Eck sees this as a positive indicator of global economic growth and energy prices. He also highlights U.S. government spending as a bullish catalyst for the commodities trade, noting that fiscal spending is running at historically high levels.
The S&P GSCI Index Spot, which tracks commodities ranging from crude oil to cocoa, is up 10% year to date, reflecting the overall positive trend in the commodities market. Van Eck’s optimistic outlook on commodities is based on the belief that the world economy is on the brink of a “big change” fueled by international expansion and increased demand for essential resources. Investors looking to capitalize on this trend may find commodities to be a lucrative investment option in the current market environment.
