Bank of America has forecasted that commodities could generate annualized returns of approximately 11%, nearly doubling the recent performance of bonds.

This projection comes as the bank identifies several factors driving this trend, including rising debt, demographic changes, and reverse-globalization. According to the bank’s strategists, these elements are all contributing to a structural rise in inflation, which is expected to fuel demand for commodities like oil and gold.

Among commodities, gold has been a particularly strong performer, surging by 21% this year alone. Oil prices have remained relatively stable, trading at levels similar to those of two years ago. Despite this, the overall commodities index has outperformed bonds, with annualized returns ranging between 10% and 14%, even amidst falling inflation and a dovish Federal Reserve.