Hot commodities

Resource Investor has a great piece comparing returns on commodities from 1999 - 2007. While none of this is really new, it's still quite impressive to see the numbers behind the hype. Some choice selections:

• The price of crude oil increased by nearly 700% (1999-2007), or roughly 26% per year. Oil is up 46% this year so far.
• Wheat was the best-performing commodity in 2007 (77% gain). This will come as little surprise to anyone who's followed the global food crisis with even a passing interest. For anyone concerned about food supplies, you will be happy to know that wheat stocks are expected to rise dramatically this year due to more acreage planted and better weather.
• In comparison, the NASDAQ increased by 21% (1999-2007), with an annualized return of 2.1%. Small wonder there's so much money in commodities markets these days.