At the moment the developed word is using much more commodities per person than developing nations. But this is changing fast. People in China and India are starting to buy cars and eat better food. They are eating more expansive food like beef. And it takes a lot of soft commodities to feed a cow. This rising demand is visible in all commodities, the demand is growing very hard in the energy sector. But it might surprise you to know that these countries also have a high demand for gold. Gold is very important in many developing nations like India.
The demand is growing in very populous area's. China and India are the most populous nations in the world. This makes the demand growth extra explosive. This demand growth will surely drive up prices.
This expanding demand is also a very important reason to invest in commodities.
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