Comments on: Are Rising Commodity Prices a Sign of a Bubble or Demand http://www.dailyreckoning.com.au/commodity-prices-3/2008/04/02/ An independent perspective on the Australian and global investment markets Sat, 21 Nov 2009 10:39:45 -0600 http://wordpress.org/?v=2.8 hourly 1 By: James http://www.dailyreckoning.com.au/commodity-prices-3/2008/04/02/comment-page-1/#comment-45246 James Wed, 08 Oct 2008 07:03:50 +0000 http://www.dailyreckoning.com.au/commodity-prices-3/2008/04/02/#comment-45246 "That shift reflects decades of under-investment in productive capacity for real goods and a decade of over-investment in real-estate and hosing-related assets." "...hosing-related assets." Congratulations, this may be the most succint and insightful piece of analysis ever written. "That shift reflects decades of under-investment in productive capacity for real goods and a decade of over-investment in real-estate and hosing-related assets."

"...hosing-related assets."
Congratulations, this may be the most succint and insightful piece of analysis ever written.

]]> By: justin http://www.dailyreckoning.com.au/commodity-prices-3/2008/04/02/comment-page-1/#comment-15185 justin Wed, 02 Apr 2008 05:28:32 +0000 http://www.dailyreckoning.com.au/commodity-prices-3/2008/04/02/#comment-15185 Are soft commodities priced and traded in $US? If so, is this not why prices are rising i.e. the value of the $US is falling? Are soft commodities priced and traded in $US?

If so, is this not why prices are rising i.e. the value of the $US is falling?

]]> By: nero42 http://www.dailyreckoning.com.au/commodity-prices-3/2008/04/02/comment-page-1/#comment-14979 nero42 Wed, 02 Apr 2008 02:12:37 +0000 http://www.dailyreckoning.com.au/commodity-prices-3/2008/04/02/#comment-14979 It seems to me that a large part of the gain is from genuine shortages. The rising living standards in Asia are allowing more people to purchase more rice/corn/wheat, etc.. The first thing that people do when they have more money in their pocket is buy superior food at greater quantities. Speculation is moving the prices up past their natural point, certainly, but I believe the rising standards of living in Asia are also moving the commodity prices north. It seems to me that a large part of the gain is from genuine shortages. The rising living standards in Asia are allowing more people to purchase more rice/corn/wheat, etc.. The first thing that people do when they have more money in their pocket is buy superior food at greater quantities.

Speculation is moving the prices up past their natural point, certainly, but I believe the rising standards of living in Asia are also moving the commodity prices north.

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