Commodity Markets Shift Focus from Trading to Long-term Investment

Commodity markets are shifting from being viewed as cyclical trading instruments to long-term investment assets, according to Sunil Katke, National Head of Commodity-Retail at Kotak Securities.

This change is driven by structural themes such as deglobalization, energy transition, infrastructure spending, supply-chain realignment, central-bank diversification, and geopolitical uncertainty, which are reshaping commodity markets.

Gold has already established itself as a strategic asset for Indian investors, but the opportunity is extending to other critical commodities like silver and copper.

Katke notes that traditional equity-debt portfolios may not provide sufficient diversification during inflationary or geopolitical shocks, making commodities an increasingly relevant portfolio sleeve.