money

DUBAI: Global commodities remain a good investment opportunity for 2010 on the back of strong growth in 2009, where commodity investors saw returns rise in line with significant price increases for key commodities, according to J.P. Morgan Asset Management.

"Commodities offered strong returns in 2009. Commodity investors can expect to see further opportunities for growth in 2010 as demand continues to outstrip supply," said its vice-president for business development in the Middle East and North Africa, Simon Littmoden.

He said the huge growth in demand for commodities to build new railways, expressways and structures could be seen in emerging economies.

"Commodities will continue to benefit from urbanisation, with the latest figures indicating that 180,000 people around the world, move from a rural to an urban area every single day," he told a gathering of financial advisors here.

According to the global asset management company, last year saw the price of copper, zinc, base metals and aluminium rise by 140 per cent, 112 per cent, 104 per cent, and 44 per cent respectively, as a result of growing global demand for commodities coupled with ongoing supply shortages.

It said this year, demand for commodities would continue to increase as emerging economies like China, India, Brazil and Russia buy up key building materials to meet massive infrastructure plans, fuelled by urban migration. - Bernama