Silver

Silver ore
Jens Otte / Shutterstock

Rogers has long been a fan of commodities, and silver is one of his favorites.

“The all-time high for silver is $50 an ounce; now it’s $23. Why can’t silver go back to its all-time high? That’s the way markets usually work,” he says.

Investors love silver because it can be a store of value and a hedge against rising interest rates and inflation.

At the same time, it’s widely used as an industrial metal. For instance, silver is a critical component in solar panels. So with increasing solar adoption, demand for the grey metal could get another boost.

Rising prices benefit miners, so some of the easiest ways to play a looming silver boom are through companies like Wheaton Precious Metals, Pan American Silver and Coeur Mining.

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Copper

Copper wire
ShutterStock

Unlike silver, which is trading at less than half its all-time high, copper is hitting new heights.

But Rogers continues to like copper for a very simple reason: electric vehicles.

“An electric car uses several times as much copper as a combustion engineering car, so there’s going to be huge demand for some of these metals that we didn’t have before,” he explains.

“Yes, it’s at all-time highs now, but electric cars are just getting started.”

As is the case with silver, investors can use copper miners to get exposure to the metal. Companies like Rio Tinto, Freeport-McMoRan and Southern Copper are well-positioned to capitalize on the copper boom.

To be sure, many copper miners have already enjoyed substantial rallies in their share prices. The Global X Copper Miners ETF is up over 80% in the past 12 months.

If you’re on the fence about jumping in at a high price, you can build your own copper portfolio just by using digital pennies.

Agriculture

Wheat field against blue sky
thayra / Twenty20

Rogers loves agricultural commodities, like sugar or corn. But this time, he’s also stressing the importance of farmland itself.

“Unless we’re going to stop wearing clothes and eating food, agriculture is going to get better. If you really, really love it, go out there and get yourself a farm and you’ll get very, very, very rich,” he says.

Indeed, farmland could be a great hedge because it’s intrinsically valuable and has little correlation with the ups and downs of the stock market.

Over the years, agriculture has been shown to offer higher risk-adjusted returns than both stocks and real estate.

The best part? You don’t need to get your hands dirty to get a piece of the action.

New platforms allow you to invest in U.S. farmland by taking a stake in the farm of your choice. You’ll earn cash income from the leasing fees and crop sales. And of course, you’ll benefit from any long-term appreciation on top of that.

Fine art as an investment

Stocks can be volatile, cryptos make big swings to either side, and even gold is not immune to the market’s ups and downs.

That’s why if you are looking for the ultimate hedge, it could be worthwhile to check out a real, but overlooked asset: fine art.

Contemporary artwork has outperformed the S&P 500 by a commanding 174% over the past 25 years, according to the Citi Global Art Market chart.

And it’s becoming a popular way to diversify because it’s a real physical asset with little correlation to the stock market.

On a scale of -1 to +1, with 0 representing no link at all, Citi found the correlation between contemporary art and the S&P 500 was just 0.12 during the past 25 years.

Earlier this year, Bank of America investment chief Michael Harnett singled out artwork as a sharp way to outperform over the next decade — due largely to the asset’s track record as an inflation hedge.

Investing in art by the likes of Banksy and Andy Warhol used to be an option only for the ultrarich. But with a new investing platform, you can invest in iconic artworks just like Jeff Bezos and Bill Gates do.

About the Author

Jing Pan

Jing Pan

Investment Reporter

Jing is an investment reporter for MoneyWise. Prior to joining the team, he was a research analyst and editor at one of the leading financial publishing companies in North America. An avid advocate of investing for passive income, he wrote a monthly dividend stock newsletter for the better half of the past decade. Jing holds a Master’s Degree in Economics and an Honours Bachelor of Science Degree, both from the University of Toronto.

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