- What are the most promising commodities in 2025?
- Which commodities to choose based on your investor profile?
- How to buy commodities in Singapore?
- Our 5 tips before buying commodities
- FAQ
- On the same topic
In 2025, the commodities market is evolving at a rapid pace, driven by factors such as shifting global demand, supply disruptions, and ongoing economic uncertainties. Last year witnessed significant fluctuations across major assets, drawing more attention to commodities as an investment option. Now, many investors are keen to discover which opportunities may stand out this year. This page provides an overview of the most promising commodities based on historical performance, market capitalization, growth potential, volatility, and sector dynamics—serving as a practical guide for both beginners and experienced investors in Singapore.
Attention!
The content on this page is provided for informational purposes only and does not constitute investment advice. Before investing in commodities, it is essential that you conduct your own research, assess the risks involved, and act with caution. Please ensure compliance with all applicable regulations, including those set by the Monetary Authority of Singapore (MAS).
What are the most promising commodities in 2025?
In 2025, commodities continue to attract attention among Singaporean investors due to their diversification benefits, varied use cases, and importance in both global and regional supply chains. The following comparison and deeper dives focus on ten leading commodities, selected for their adoption potential, ecosystem strength, liquidity, volatility, and market prospects—offering an up-to-date perspective for market participants seeking insights into this dynamic asset class.
| Commodity | Supply & Demand | Liquidity | Storage Needs | Volatility | Price Trend |
|---|---|---|---|---|---|
| Gold | Strong | High | Easy | Moderate | Upward |
| Crude Oil | Dynamic | High | Complex | High | Variable |
| Silver | Dual-use | High | Moderate | High | Upward |
| Copper | Expanding | High | Moderate | Moderate | Upward |
| LNG | Growing | Moderate | High | High | Upward |
| Rubber | Regional | Moderate | High | Moderate | Variable |
| Palm Oil | Steady | High | Easy | Moderate | Upward |
| Wheat | Cyclical | High | Bulky | Moderate | Upward |
| Coffee | Stable | Moderate | Easy | Moderate | Upward |
| Nickel | Rising | Moderate | Complex | High | Upward |
Gold
| Criterion | Description | Why it matters |
|---|---|---|
| 🟡 Current Price | $1,950/oz (August 2025) | Global reference for value storage |
| 📊 End-Year Target | $2,050/oz | Anticipates market consensus |
| 👤 Investor Type | All—hedgers, private, institutional | Universal appeal and resilience |
| 🧮 Market Capitalisation | ~$12T (global estimate) | High depth and trading capacity |
| 💧 Liquidity | Extremely high | Enables swift entry and exit |
| 🔄 6-Month Evolution | +4% | Reflects recent trend |
| 📆 1-Year Performance | +10% ($1,770 → $1,950) | Assesses year-on-year stability |
| 📈 5-Year Performance | +40% | Indicates mid-term value preservation |
| ⏳ 10-Year Performance | +60% ($1,220 → $1,950) | Comments on long-term appreciation |
| 🏆 10-Year High | $2,075/oz | Frames upside potential |
| 📉 10-Year Low | $1,050/oz | Identifies downside risk |
| 🌏 Trading Volume | Leading, global | Sign of worldwide trust and participation |
Gold maintains a vital role for global and regional investors, especially as a diversification and risk management anchor in portfolios. Its high liquidity, long historical record, and use as a hedge against macroeconomic shocks make it highly relevant for 2024’s uncertain environment.
Crude Oil
| Criterion | Description | Why it matters |
|---|---|---|
| 🛢️ Current Price | $75/barrel (August 2025) | Benchmark for energy costs |
| 📊 End-Year Target | $85/barrel | Reflects expectations of sector growth |
| 👤 Investor Type | Energy, active, short-term traders | Indicates energetic market participation |
| 🧮 Market Capitalisation | Multi-trillion | Measures market impact |
| 💧 Liquidity | High | Fosters flexible and deep trading |
| 🔄 6-Month Evolution | +5% | Gauges recent direction |
| 📆 1-Year Performance | +11% | Informs analysis of last annual period |
| 📈 5-Year Performance | +24% | Traces recovery and cycle reinvigoration |
| ⏳ 10-Year Performance | +41% | Frame for long-term decision-making |
| 🏆 10-Year High | $110/barrel | Assesses major price spikes |
| 📉 10-Year Low | $30/barrel | Reveals deep cyclical price risks |
| 🌏 Trading Volume | Top ranks, global | Indicates robust participation |
Crude oil retains systemic importance as a determinant of global transport, manufacturing, and regional energy markets. Its volatility and influence from OPEC+ and Asian demand make it a focal commodity in 2025.
Silver
| Criterion | Description | Why it matters |
|---|---|---|
| ⚪ Current Price | $25/oz (August 2025) | Industrial and investment dual function |
| 📊 End-Year Target | $27/oz | Infers analyst sentiment for the period |
| 👤 Investor Type | Industrial, speculative, long-term | Highlights user diversity |
| 🧮 Market Capitalisation | ~$1.2T (est.) | Secondary depth to gold |
| 💧 Liquidity | High | Boosts flexibility for various strategies |
| 🔄 6-Month Evolution | +6% | Recent trend observation |
| 📆 1-Year Performance | +12% ($22.32 → $25) | Shows positive annual momentum |
| 📈 5-Year Performance | +32% | Reflects persistent demand hike |
| ⏳ 10-Year Performance | +55% ($16.13 → $25) | Demonstrates long-term resilience |
| 🏆 10-Year High | $30/oz | Upper limit for planning |
| 📉 10-Year Low | $13/oz | Risk reference in adverse cycles |
| 🌏 Trading Volume | Significant, global | Ensures liquidity for Asian/SG investors |
Silver continues to benefit from growth in electronics, solar, and clean tech, while its volatility and dual profile suit both hedgers and shorter-term traders. Liquid markets ensure relevance from Asia to global venues.
Copper
| Criterion | Description | Why it matters |
|---|---|---|
| 🧡 Current Price | $4.50/lb (August 2025) | Key industrial metric for Asia |
| 📊 End-Year Target | $4.90/lb | Reflects expected demand from electrification |
| 👤 Investor Type | Manufacturing, infrastructure, thematic | Core to Asia’s physical markets |
| 🧮 Market Capitalisation | ~$400B (est.) | Robust, widely traded asset |
| 💧 Liquidity | High | Supports hedging and leverage strategies |
| 🔄 6-Month Evolution | +4% | Tracks sector cyclical turns |
| 📆 1-Year Performance | +15% | Correlates with infrastructure expansion |
| 📈 5-Year Performance | +43% | Highlights broader industrial story |
| ⏳ 10-Year Performance | +73% | Demonstrates value over long cycles |
| 🏆 10-Year High | $5.12/lb | Peak reference for cyclical expansion |
| 📉 10-Year Low | $2.12/lb | Downside risk for position management |
| 🌏 Trading Volume | Conspicuous, global exch. | Ensures hedging menu for Asian corporates |
Copper’s centrality to Asia’s green transition, construction, and technology investments drives sector interest. Expanding use cases in batteries and renewables are supporting price trends for 2025.
LNG
| Criterion | Description | Why it matters |
|---|---|---|
| 🔥 Current Price | $9/MMBtu (August 2025) | Index for Asian LNG hubs |
| 📊 End-Year Target | $11/MMBtu | Anticipates peak seasonal/industrial demand |
| 👤 Investor Type | Utilities, trading, regional funds | Asian demand echo in user profile |
| 🧮 Market Capitalisation | ~$600B (est.) | Growing asset in Asia |
| 💧 Liquidity | Moderate, improving | Increasing hedging, not yet rivaling oil/gas |
| 🔄 6-Month Evolution | +9% | Volatility from demand spikes |
| 📆 1-Year Performance | +18% | Indicates active market flows |
| 📈 5-Year Performance | +30% | Underscores expanding Asian energy market |
| ⏳ 10-Year Performance | +67% | Shows growth since last decade |
| 🏆 10-Year High | $14/MMBtu | Limits for risk budgeting |
| 📉 10-Year Low | $4/MMBtu | Historical downside guardrail |
| 🌏 Trading Volume | Gaining traction globally | Opens doors for wider portfolio exposure |
LNG is gaining relevance with Asia’s pivot to natural gas and renewables for energy transition, making it a strategically useful commodity. Volatile but with growing liquidity, LNG markets in Singapore reflect deepening Asian energy integration.
Rubber
| Criterion | Description | Why it matters |
|---|---|---|
| 🌱 Current Price | $1.75/kg (August 2025) | Regional benchmark |
| 📊 End-Year Target | $2.00/kg | Supplies, weather, and auto sector linked |
| 👤 Investor Type | Manufacturing, exporters, active traders | Concentration in ASEAN markets |
| 🧮 Market Capitalisation | ~$40B (est.) | Important for regional trade flows |
| 💧 Liquidity | Moderate | Facilitates trade between SE Asia participants |
| 🔄 6-Month Evolution | +2% | Seasonal supply impacts |
| 📆 1-Year Performance | +7% | Intra-year consistency observed |
| 📈 5-Year Performance | +19% | Reveals mid-term opportunities |
| ⏳ 10-Year Performance | +22% | Cyclical, but slow and steady |
| 🏆 10-Year High | $2.20/kg | Asia supply/demand reference |
| 📉 10-Year Low | $1.10/kg | Mitigates long-term downside |
| 🌏 Trading Volume | Moderate in SE Asia | Key for hedging ASEAN-centric exposure |
Rubber is crucial for the manufacturing supply chain in Southeast Asia, especially in automotive and industrial production. Singapore’s role as a trading and hedging hub adds to its market visibility and appeal.
Palm Oil
| Criterion | Description | Why it matters |
|---|---|---|
| 🟢 Current Price | $900/ton (August 2025) | Singapore-regional pricing standard |
| 📊 End-Year Target | $1,000/ton | Informs trade, hedge, futures strategies |
| 👤 Investor Type | Food, consumer, ESG, commodity managers | Used across fast-moving consumer goods |
| 🧮 Market Capitalisation | ~$90B (est.) | Reflects dominant Asia production share |
| 💧 Liquidity | High | Ensures entry for risk and portfolio flex |
| 🔄 6-Month Evolution | +4% | Tracks equity/commodity co-movement |
| 📆 1-Year Performance | +13% | Correlates with economic reopening |
| 📈 5-Year Performance | +30% | Demand-led medium trend |
| ⏳ 10-Year Performance | +37% | Enduring demand/production patterns |
| 🏆 10-Year High | $1,250/ton | Past squeeze marker |
| 📉 10-Year Low | $500/ton | Downside test |
| 🌏 Trading Volume | Actively traded in Asia | Enhances toolbox for SG risk managers |
Palm oil trades briskly in Southeast Asia and is critical for global food supply chains. ESG trends and rising demand keep its profile strong, while market growth reflects both economic trends and regulatory shifts.
Wheat
| Criterion | Description | Why it matters |
|---|---|---|
| 🌾 Current Price | $7.20/bushel (August 2025) | Global grain benchmark |
| 📊 End-Year Target | $7.50/bushel | Trade reference and volatile crop cycles |
| 👤 Investor Type | Agri, food industry, hedgers | Key for food production planning |
| 🧮 Market Capitalisation | High in global grains | Breadth of users and production |
| 💧 Liquidity | High | Deep futures/options markets |
| 🔄 6-Month Evolution | +2% | Crop-season dependent |
| 📆 1-Year Performance | +8% | Measures climate/trade shifts impact |
| 📈 5-Year Performance | +23% | Gauges global food security risk |
| ⏳ 10-Year Performance | +35% | Highlights resilience across disruptions |
| 🏆 10-Year High | $10/bushel | Reference for risk-on analysis |
| 📉 10-Year Low | $5/bushel | Anchors downside scenarios |
| 🌏 Trading Volume | Large and global | Useful for international hedgers |
Wheat remains the staple commodity of global food chains. Its liquidity and exchange listing offer diverse risk management opportunities, making it especially relevant in volatile agricultural years.
Coffee
| Criterion | Description | Why it matters |
|---|---|---|
| ☕ Current Price | $1.80/lb (August 2025) | Global industry benchmark |
| 📊 End-Year Target | $2.00/lb | Outlook for supply-demand and trend traders |
| 👤 Investor Type | Retail, FMCG, export, traders | End-user and commercial significance |
| 🧮 Market Capitalisation | ~$35B (est.) | Shows large, liquid international market |
| 💧 Liquidity | Moderate to high | Supporting speculative and hedging activity |
| 🔄 6-Month Evolution | +3% | Reflects crop sensitivity |
| 📆 1-Year Performance | +7% | Demand resilience through cycles |
| 📈 5-Year Performance | +19% | Consistent growth with globalisation |
| ⏳ 10-Year Performance | +30% | Long-term trend with consumption expansion |
| 🏆 10-Year High | $2.50/lb | Market tightening reference |
| 📉 10-Year Low | $1.00/lb | Illustrates historic risk |
| 🌏 Trading Volume | High on ICE international | Facilitates market accessibility |
Coffee’s unique cycles and dual use in both retail and institutional asset management make it of high interest to regional investors. Singapore’s trading role further underpins its relevance.
Nickel
| Criterion | Description | Why it matters |
|---|---|---|
| ⚙️ Current Price | $17,500/ton (August 2025) | Asia LME price index |
| 📊 End-Year Target | $19,000/ton | Drives clean tech forecasts |
| 👤 Investor Type | Engineering, battery, metals, resource funds | Industrial and ESG interest |
| 🧮 Market Capitalisation | ~$40B (est.) | Reflects investment inflows for new tech demand |
| 💧 Liquidity | Moderate (LME/SGX) | Still growing but supports risk transfer |
| 🔄 6-Month Evolution | +8% | Signals tightness from battery demand |
| 📆 1-Year Performance | +21% | Mirrors green tech expansion |
| 📈 5-Year Performance | +29% | Evidence of early electrification cycle |
| ⏳ 10-Year Performance | +35% | Long-term support from industrial needs |
| 🏆 10-Year High | $22,000/ton | Upper tail for tech supply shocks |
| 📉 10-Year Low | $8,000/ton | Anchors price volatility |
| 🌏 Trading Volume | Growing rapidly in Asia | Favors trend-following strategies |
Nickel is an essential input for batteries and steel, gaining strategic relevance as the energy and auto sectors evolve. Expanding activity on Asian exchanges is making nickel increasingly central to futures and options traders in Singapore in 2025.
Which commodities to choose based on your investor profile?
Choosing which commodities to buy depends greatly on your investor profile, personal goals, and level of experience. It’s important to match your asset choices with how comfortable you are with risk, how much time you can spend managing your investments, and what you hope to achieve. Here are some suggestions to help you get started based on different investor profiles in Singapore:
| Investor Profile | Recommended Assets |
|---|---|
| Beginner | Broad-based commodities ETFs or mutual funds for easy diversification and lower risk. |
| Intermediate | Individual commodity stocks (e.g., mining or energy companies), or futures-based ETFs for more active control. |
| Experienced | Direct trading in commodity futures, options, or physical commodities for greater flexibility and risk/reward. |
Good to know
If you’re just starting out, consider beginning with a small budget. This allows you to learn how the commodities market works without taking excessive risks.
How to buy commodities in Singapore?
Buying financial assets is now accessible to everyone, thanks to user-friendly and secure platforms. With just a few steps, beginners can start participating in financial markets in a safe and regulated manner.
| Step | What to Do |
|---|---|
| Choose a reliable exchange or broker | Compare platforms regulated in Singapore. Look for positive reviews, transparency, and strong security measures. |
| Create an account and verify identity | Register online and complete identity verification, following anti-money laundering requirements. |
| Deposit funds | Fund your account using a bank card or wire transfer. Make sure you understand any fees or timing for deposits. |
| Purchase desired assets | Use the platform’s interface to buy the financial assets of your choice (such as stocks, ETFs, cryptocurrencies, or commodities). |
| Secure their storage | Store your assets safely. Use an external wallet for cryptocurrencies or a secure securities account for stocks and ETFs. |
Good to know
Any gains from selling financial assets may be subject to taxation in Singapore. It is important to keep detailed records of all your transactions for accurate reporting and compliance.
Our 5 tips before buying commodities
Investing in commodities can diversify your portfolio and offer unique growth opportunities, but it also comes with its own set of risks. Following best practices is crucial for safeguarding your capital and making informed decisions. By adhering to essential recommendations and understanding the regulatory landscape set by authorities like the Monetary Authority of Singapore (MAS), you can build a solid foundation for investing in commodities with confidence.
| Tip | Explanation |
|---|---|
| Do thorough market research | Understand price trends, supply-demand factors, and the nature of different commodity markets. |
| Set a clear investment budget | Invest only what you can afford to lose and avoid using money meant for essential expenses. |
| Choose regulated brokers/platforms | Select trading platforms or brokers licensed by MAS for greater security and transparency. |
| Diversify your commodity holdings | Spread your investments across various commodities to reduce risk and manage volatility. |
| Stay updated with regulations | Monitor any changes in rules and tax policies relevant to commodities trading in Singapore. |
FAQ
What are commodities and how are they traded in 2025?
Commodities are basic goods like gold, oil, or wheat that are traded on global markets. In 2025, investors can access commodities through online brokers, exchange-traded funds, or futures contracts, often with the ease and transparency provided by regulated platforms in Singapore.
How can I identify if a commodity is a promising investment?
Look for signs like consistent demand, stable or growing global consumption, and supportive market trends. It’s also helpful to review recent price movements and keep up with industry news to spot factors that could impact future value.
What is a good strategy for investing in commodities in 2025?
Consider diversifying across different types of commodities and investing gradually rather than all at once. This helps manage risk if prices fluctuate. Remember to set clear goals and review your investments periodically as the market environment changes.
What are the main risks when investing in commodities?
Commodities prices can be highly volatile due to global events, weather, or supply disruptions. There may also be risks from foreign exchange fluctuations and changes in local regulations, so staying informed is key to managing your investments safely.
Are there specific rules or taxes for Singapore investors trading commodities?
Singapore has well-established guidelines for commodity trading, and any gains may be subject to certain tax considerations depending on the nature and intent of your investments. It’s recommended to stay updated with local regulations or consult a financial expert for tailored advice.
What are commodities and how are they traded in 2025?
Commodities are basic goods like gold, oil, or wheat that are traded on global markets. In 2025, investors can access commodities through online brokers, exchange-traded funds, or futures contracts, often with the ease and transparency provided by regulated platforms in Singapore.
How can I identify if a commodity is a promising investment?
Look for signs like consistent demand, stable or growing global consumption, and supportive market trends. It’s also helpful to review recent price movements and keep up with industry news to spot factors that could impact future value.
What is a good strategy for investing in commodities in 2025?
Consider diversifying across different types of commodities and investing gradually rather than all at once. This helps manage risk if prices fluctuate. Remember to set clear goals and review your investments periodically as the market environment changes.
What are the main risks when investing in commodities?
Commodities prices can be highly volatile due to global events, weather, or supply disruptions. There may also be risks from foreign exchange fluctuations and changes in local regulations, so staying informed is key to managing your investments safely.
Are there specific rules or taxes for Singapore investors trading commodities?
Singapore has well-established guidelines for commodity trading, and any gains may be subject to certain tax considerations depending on the nature and intent of your investments. It’s recommended to stay updated with local regulations or consult a financial expert for tailored advice.
On the same topic
