Whereas precious metals mostly gain in value at times of economic crisis, prices of industrial raw materials mostly depend on the behavior of the largest consumers of such materials. For instance, China, which in recent years has become the largest consumer of copper, purchases raw materials depending on the internal political situation rather than macroeconomic factors.
Given the stability of commodity prices in a short-term horizon and the fact that they constitute indispensable building blocks of any economy, raw materials offer some of the safest investment opportunities in the market. Investments in this sector can significantly diversify an investment portfolio, safeguarding it against unwelcome risks. The management of STARHEDGE sees long-term investments in raw materials as an opportunity to diversify the company’s portfolio and protect it against the effects of inflation. Besides, investments in public companies operating in this sector of the economy are considered a source of additional profits gained from their shares or other financial instruments issued by the companies, e.g. bonds or options.