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The trading profits that can be earned over the next 5-7 years in basic commodities is incalculable. You do not want to regret missing out on this upcoming market opportunity. We are looking at entering the next wave of potentially the biggest major move in commodities in the past thirty years. Almost every market has had a run up, settled back down a bit, and is now primed for more upside movement. If past bull market history is any indicator, prices of almost every commodity will probably soar to historical highs over the next two to three years. To give you an idea of what I think is in store, take a look at my top five picks for 2007: 1 - Gold Continue buying it. In my estimation, the effective "floor" in the gold market, at least for the next several years, is close to $550. After an initial bump to over the $600 an ounce mark, the gold market experienced a correction/consolidation phase, retracing approximately half the distance between $625 and $525. It is, at the time of this article, back near the $630 level. Expect gold to surpass its former all-time high, and move well beyond $1,000 an ounce. Between gold and silver, thus far gold has been the market leader, which is why I would recommend it over silver. I would be astounded to see gold fall back under $500 anytime in the foreseeable future--but I would not be surprised in the least to see the price of gold over $2,000 an ounce within the next 18 months. 2 - Cotton To date, cotton has been the runt of the litter in the commodity bull market. When it does gain pace with the rest of the market, I forecast that it will find its footing right away. Cotton prices are now bobbing around $0.50, even with China and India driving exports and because the South hasn't regained full momentum after Hurricane Katrina's wake. All things considered, I think cotton prices will double in the next two years. 3 - Wheat Among the grains, wheat has revealed unfailing strength almost since the beginning of the current bull market. Even on days when USDA reports knocked down soybeans and corn, wheat was determined to push through. My long-term price target for wheat is $8-$10. 4 - Cocoa Cocoa's performance has recently been in line with the gold market: for quite a while it was trapped at the same price, but then in the most recent bull market, cocoa prices soared to the mid-$20s. They have since pulled back to $14-$15, but recent signs of prices hitting the floor mean a change for the better could be waiting just around the bend. As with nearly all other markets, I predict that cocoa will hit new records during phase 2 of this bull market. If you hesitated to buy during cocoa's first run-up, don't miss out the second time around. Buy! 5 - The CRB Index The CRB Index is the easy way to benefit from gains across the entire commodities market, which now happens to be the most significant bull market we have seen. In the 1980s and 1990s, many people wasted too much time researching winning stocks. In those days, it was practically a free ride to Easy Street to invest in the Dow Jones or S&P indexes. The CRB Index works the same way for commodities. Especially for beginning commodities investors, the CRB Index lets you benefit from all market movement without having to specify a certain hot market and investment time. As in all markets, every commodity market can see-saw, but in general the market always trends up. We are living through a bull market, after all. The upcoming five years in the commodities markets will offer a one-of-a-kind chance to make money. Don't wait: another chance like this one certainly doesn't present itself every day. Don't miss out on the opportunity to invest for a couple of years, earn big, and then retire with all of your needs and wants taken care of.
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Halston Adams is an ex-broker who managed to learn from top traders, enabling him to grow his own $8,000 trading account into over $56,000 in 3 years. Learn more about his trading approach at: Futures Trading Secrets today.
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