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Investors Turn Bullish on Commodities in 2012: Survey
26 Feb 2012 EST - CNBC.com
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Investors say increased liquidity from major central banks such as the U.S. Federal Reserve and the European Central Bank will be the biggest upside driver of prices this year.

“An extension of the ECB’s long-term refinancing operations, or further quantitative easing measures, are viewed as very positive for the performance of commodity assets,” the bank said.

However, a hard landing in China, the world’s largest consumer of raw materials, is viewed as the biggest risk for the sector, according to the survey.

But Chris Kimber, Managing Director, Wealth Management at Fat Prophets, who has been bullish on commodities for the past two years, told CNBC he does not foresee a sharp slowdown in Chinese growth and expects demand to stay strong.

Winners and Losers

Among specific commodity picks, crude oil received the most votes for the best performer in 2012, while natural gas and grains are expected to be the biggest losers for the year. However, respondents were divided over the prospects for gold and copper .

Sixteen percent of the investors expect the precious metal to be the best performer this year, while 11 percent say it will be the worst performer. Gold was one of the top performing assets in 2011, rising around 10 percent.

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