Commodities market data from the first half of 2023 has revealed that only gold and lithium performed positively in H1 2023. Now that the second half of the year has begun in earnest, analysis of the commodities markets’ performance in H1 2023 revealed that lithium was the best-performing commodity, thanks to a 10.81% gain. Alongside lithium, gold was the only other commodity to gain ground in the first half of the year to register a positive return for investors.
While gold and lithium saw relative increases in price over the first half of the year, nearly every other commodity recorded negative returns amid a global manufacturing slowdown caused by poor economic performance in manufacturing hub China. Unlike other nations that lifted lockdown orders by 2022, China maintained a strict no-COVID policy that shut down several manufacturing regions and had major impacts on the supply chain.
Lithium and gold performed positively due to increased demand from their respective markets in the first half of the year. As a primary ingredient in electric vehicle batteries, lithium is predicted to enjoy high demand through the decade as nations and automakers transition from internal combustion engine (ICE) cars to battery electric cars, possibly even outpacing global supply.
Experts predict that global demand for lithium will exceed two million metric tons of lithium carbonate equivalent primarily due to demand from the electric vehicle industry. China is currently the largest market on the globe and despite poor economic conditions in the country, Chinese drivers have purchased record numbers of electric cars in recent months. American electric car manufacturer Tesla enjoys a majority market share in China but is facing increasing competition from local automakers such as BYD and Wuling Motors, bolstering the demand for lithium even further.
Gold, on the other hand, saw prices surge in 2022 as several central banks led by China bought a record amount of gold. The World Gold Council reports that in 2022 central banks purchased the most gold since 1950, adding around 1,136 metric tons of gold worth $70 billion to their reserves. The precious metal rose by 4.93% in the first half of the year thanks to sustained demand from central banks and the greenback’s support.
Additionally, the mini-banking crisis in March increased doubt in the banking system and encouraged more investors to add gold to their portfolios for diversification.
Market experts predict that gold will maintain its performance through the second half of the year, thanks to supporting factors such as hedging strategies and the potential for stronger economic recovery in India and China.
This positive market performance of gold on the world market could have several implications for enterprises that are engaged in mining gold and making jewelry from this precious metal, such as GEMXX Corp. (OTC: GEMZ).
NOTE TO INVESTORS: The latest news and updates relating to GEMXX Corp. (OTC: GEMZ) are available in the company’s newsroom at https://ibn.fm/GEMZ
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