Commodities markets saw a paltry $15 billion in new investments last year, compared with inflows of $140 billion in 2009-2010, according to a Barclays Capital report quoted by Reuters. This is the weakest level in nine-years, and represent’s a nearly 78% year-over-year drop in 2011.
Investors steered clear from the volatility in markets cause by the European debt crisis and fears of a Chinese hard-landing.
Barclays’ analysts expects investment into commodities to climb again in 2012, but doesn’t expect it to reach 2009 – 2010 levels. They also think the correlation between commodities and other asset classes like stocks which showed up next year, because of macro concerns, will ease in 2012.