Due to the impact of the COVID-19 epidemic last year, most economies in the world have a certain scale of currency over-issuance, so there is a certain degree of overheating for most economies, and for these funds, most of them have flowed to the real estate market and the stock market, but for the current stock market, its overall valuation has been relatively high, so for most institutional investors, they will not choose to invest a lot of money in the whole stock market. Therefore, for them, they will spread some funds to other fields. At present, the overall commodity price is at a relatively low level, so there are better investment opportunities for the overall commodity at present.
More crucially, for the current global economy, there is a certain risk of overheating. Therefore, for most institutional investors, the best investment products in the period of overheated economic development are commodities, because for these commodities, they have certain anti-inflation ability. Even if there is some inflation in the future, they can make use of the intrinsic value of these commodities to spend this period safely. Therefore, for most institutional investors, when they expect certain inflation risks in the future, they will buy a lot of commodities to fight global inflation.
Moreover, all kinds of commodities in the world are also good investment targets, and the futures market in the world is also prosperous, so many factors make the global commodities rise to a certain extent.