Why Many Commodities Are Still Undervalued

Exactly a year ago, I wrote a blog post titled, “A Generational Opportunity In Commodities?” arguing the bullish case for things like copper, precious metals, oil, etc. Since then, the Bloomberg Commodity Spot Index has almost doubled in value, leading some to believe it may now actually be overvalued.

However, commodities have been in a consolidation phase for well over a decade now. The consolidation phase seen during the 1960’s lasted just about as long as the current one; the subsequent breakout higher proved to be a good…