It has been a long time since commodity prices are down. I don't put precious metals under commodity. For the past three years, since 2011, precious metals are down and, in my view, they have bottomed out. Regarding oil, I do not see it going down to $20 a barrel. The people who see it going down to $20 are those who felt oil would touch $150 a barrel when it was at $100. I see oil reaching the equilibrium at current levels and see it moving in a range of $40-60 a barrel.
Some commodities have bottomed out like iron ore and copper, but industrial commodities continue to be in the bear market. For agricultural commodities, we may see a price rise in select commodities like coffee. Food prices may not see a huge spike as we saw them rising from 2013 till 2014.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.Dr. Doom also trades currencies and commodity futures like Gold and Oil.