LONDON (Reuters) - New investor money should flow into commodities such as oil and wheat this year, helping to extend the huge gains registered in 2007 and taking crude prices through the $100 a barrel mark.
By December 31, wheat WH8 prices had risen by 76 percent since the start of 2007, while U.S. crude gained 57 percent, according to Reuters data.
Mark Matthias of British investment specialist Dawnay Day Quantum said there was still scope for investors to capitalize on further gains.
"They (commodities) have the volatility and I still think they have the upward momentum," he told Reuters.
"I think there will definitely be new money and equities are definitely looking unattractive."
Last January when U.S. crude briefly dipped below $50 a barrel, Matthias recommended buying oil at any price below $60.
Now U.S. crude is trading above $97, just off a record of $99.29 touched in November, he said he would buy if it fell back to $90 a barrel.
"I think it's going to go through $100, though it might struggle to go much above $110 and obviously there has already been quite a lot of resistance ahead of $100," he said.
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