The commodity comeback

Analysts believe that commodities are set to have a stronger year in 2012 after investors took flight to cash amid market uncertainty in 2011

Wednesday 1 February 2012 at 07:51

Commodities may have been the investors asset class of choice in 2009 and 2010, but last year was a different story after the lowest inflows in nearly a decade. Analysts at Barclays Capital, however, believe that this year could see steady gains following a rally at the start of the year.

Data from Barclays Capital's Commodity Investor report, published last week, shows that net investor inflows into direct commodity investments fell by 77% year on year to only $15bn, the lowest level since 2002.