The talk of the commodities markets has been gold and silver, yet this asset class is much larger and still offers investors diversification opportunities. Diversification is more than just correlation - it requires respect for returns. However, investors should not forget that many commodities and sub-commodity groups can provide diversification for the same reasons as gold. Real assets are effective hedges when inflation is still above central bank targets. There will be cycles, but at high gold price levels, other real assets become more attractive.
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