MUMBAI (Commodity Online): Global investors now turned their spectrum to commodities, in which they find potential gains in the wake of sluggish paper currencies. As per the reports, huge investment inflows into the commodities have been visible since the slips of US dollar.

Investment inflows are surging to the upper circuit with a record high of $60 billion this year to reach a total of $230 billion to $240 billion of commodity assets under management, a statement of Barclays Capital was quoted by Dow Jones Newswires.

Sometimes commodities must be an alternative, but the investment inflows are seen as strong as a constant potential target. According to Barclays, inflows were strong during October and it has been carried to current month. Year to- date allocations into the commodity sector are approaching $55 billion, displacing the previous record of $51 billion during 2006.

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“Absent any significant reversal in the macroeconomic outlook, we expect investment flows to remain strong throughout the fourth quarter 2009, heading for a record high of $60 billion for the year as a whole and with commodity AUMs likely to end the year at about $230-240 billion,” Dow Jones quoted the Barclays.

During November, commodities such as Copper and Gold rallied sharply, with market participants frequently citing a “wall of money” hitting the market as investors picked commodities as an alternative investment.

This week, London Metal Exchange copper hit a 14-month high of $6,992 a metric ton, and gold peaked at a record high of $1,153 a troy ounce. A weakening dollar and ultra-low U.S. interest rates encouraging carry trades also boosted commodities’ profile.

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