Best Commodities to Invest in
Top Commodities for 2025 Investments
Best Commodities to Invest in 2025
Commodities play a fundamental role in the global economy, making them an attractive option for investors looking to diversify their portfolios and hedge against inflation. Given current market conditions, economic trends, and supply-demand dynamics, certain commodities are poised to perform exceptionally well in 2025. Below is a ranked list of the best commodities to invest in for the upcoming year, along with an analysis of their potential.
1. Gold
Gold remains one of the most sought-after commodities for investors due to its status as a safe-haven asset. With continued central bank purchases, persistent geopolitical tensions, and expectations of lower interest rates from major central banks, gold is likely to continue its upward trajectory. The price of gold recently hit record highs, and further gains toward the $3,000 mark appear feasible. Gold ETFs such as the Invesco Physical Gold GBP Hedged ETC provide exposure without the need to hold physical metal.
2. Copper
Copper is set for a strong year due to a widening supply-demand deficit. The global push toward renewable energy, electric vehicles (EVs), and infrastructure expansion is increasing the demand for copper, while supply constraints continue to persist. Many analysts expect copper prices to surge as production struggles to keep up. Investors can gain exposure through ETFs such as iShares S&P GSCI Commodity-Indexed Trust (GSG).
3. Crude Oil
Despite volatility in the energy sector, crude oil remains a key commodity due to global energy demands. Geopolitical tensions, OPEC+ production strategies, and economic recovery in major markets are expected to support prices. The WisdomTree WTI Crude Oil ETC allows investors to capitalize on oil price movements without directly managing futures contracts.
4. Silver
Silver is gaining traction both as a precious metal and an industrial commodity. The metal’s role in solar panel production, electronics, and EVs makes it a critical investment opportunity. Silver has outperformed gold in past bull markets and is expected to continue benefiting from increasing industrial applications. Investors can look at the WisdomTree Physical Silver ETC for direct exposure.
5. Cocoa
Cocoa was the best-performing commodity in 2024, surging 185% due to supply shortages from West African producers. Given the ongoing impact of climate change and strong global demand, cocoa prices are expected to remain elevated. The WisdomTree Cocoa ETC offers exposure to cocoa futures without direct trading.
6. Lithium
As a key component in batteries for EVs and renewable energy storage, lithium demand is growing rapidly. While the lithium market experienced volatility in 2024, long-term fundamentals remain strong. Investors can access lithium through ETFs such as the Global X Lithium & Battery Tech ETF (LIT).
7. Natural Gas
Natural gas is a critical energy commodity, and supply disruptions combined with increasing demand for cleaner energy solutions are likely to support prices. The shift away from coal and nuclear energy in several countries also strengthens the case for natural gas. Investors can consider the United States Natural Gas Fund (UNG) for exposure.
8. Wheat
Agricultural commodities like wheat remain essential due to food security concerns. Climate change, supply chain disruptions, and geopolitical risks could drive prices higher in 2025. The Invesco DB Agriculture ETF offers a diversified agricultural commodities investment opportunity.
Investment Strategies for Commodities
Investors looking to enter the commodities market can do so through several avenues:
Exchange-Traded Commodities (ETCs): Track individual or baskets of commodities.
Commodity ETFs: Provide exposure to commodity-producing companies.
Futures Contracts: Suitable for experienced investors willing to manage high leverage.
Physical Commodities: Buying and holding tangible assets like gold or silver.
Roundup
Commodities remain an essential asset class for investors seeking diversification, inflation protection, and exposure to economic growth trends. Gold, copper, crude oil, and silver are among the most promising commodities for 2025, while agricultural and battery metals also offer strong potential. Investors should consider their risk tolerance and investment goals before entering the commodities market and explore different investment vehicles for efficient exposure.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or investment advice.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Cryptoasset investing is highly volatile and unregulated in some EU countries. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. Take 2 mins to learn more. No consumer protection. Tax on profits may apply.
This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
eToro USA LLC does not offer CFDs and neither does it represent or assume any responsibility for the accuracy or completeness of the content of this publication, prepared by What is Bitcoin, as a partner, using information available and public and not specific to the eToro entityRecommended Trading Brokers and Software Reviews
