what is Supercycle

**We are likely entering a new commodities supercycle.** This conclusion is based on the following points: 1. **Global Economic Context**: The global economy is undergoing significant transformations, such as the transition to renewable energy and the expansion of data infrastructure, which are acting as catalysts for a new supercycle. 2. **Commodity Demand**: During a supercycle, there is a sustained and significant demand for commodities that outstrips supply. The types of commodities in high demand during a supercycle typically include industrial metals, crude oil, and coal. 3. **Historical Precedents**: Historically, supercycles have been triggered by rapid industrialization and urbanization, leading to strong and sustained demand for commodities. The industrialization of the United States in the late 19th century, the reconstruction of Europe and Japan after World War II, and the emergence of China as a global manufacturer are examples of such catalysts. 4. **Current Drivers**: The current supercycle is being driven by specific factors such as the global transition to low-emission power sources, the adoption of electric vehicles, and the global debt crisis, which are leading to increased demand for certain commodities. 5. **Investment Opportunities**: Commodities supercycles often present significant investment opportunities, particularly in the metals sector, as seen in the recent rally in metal prices. Gold, in particular, is often a core asset during supercycles due to its role as a hedge against inflation and economic instability. In summary, the combination of global economic transformations, high commodity demand, historical precedents, current drivers, and investment opportunities strongly suggest that we are entering a new commodities supercycle.