Best Commodities to Invest in  

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.