A story by Gene Epstein in Barron’s this weekend warns that commodity prices could fall by at least 30% and as much as 50%. Epstein’s article highlights what he believes to be the influence of index funds on commodity prices. He goes on to list a number of factors which a handful of analysts argue will result in much lower commodity prices this year.
April 2nd, 2008 | Dan Denning | 3 comments | ContinuedAll Posts Tagged With: "commodities"
Cool Change in Commodities
Nothing has been moderate about the commodities boom. You’ve had booming demand in China, soaring prices on the resource markets, and vast new fortunes in Australia. Add to the list a bitter little one-week correction…
March 21st, 2008 | Dan Denning | 9 comments | Continued
Food and Fuel
I really enjoy history. I can’t say I am a scholar of history – I’m more like a History Channel buff. It’s interesting that when we look at the history of food prices in America, we see that in 1901, people spent 43% – almost half – of their income on food, according to the Bureau of Labor Statistics. Do you know what that figure was in 2003? We will answer that in a minute…
March 21st, 2008 | Kevin Kerr | 2 comments | Continued
A Falling Dollar Should Contribute More Strength to Commodities
But with cheaper commodities, there are likely to be bargain-hunting investors looking for a good entry point into the market. Further down the track, strong demand from Asia for real goods is likely to continue. Tangible assets still have the wood over financial assets…
March 20th, 2008 | Dan Denning | 1 comment | Continued
Bernanke is Going to Run Out of Bullets and Have to Throw the Gun
It’s hard to say for sure, but we reckon this is evidence of speculative traders and hedge funds reducing their long positions in the commodities markets. In the retreat to a larger cash position, even profitable trades in commodities must be sold.
March 18th, 2008 | Dan Denning | 3 comments | Continued
The Worst Conditions for the U.S. Economy Since the Great Depression
As we write this, gold futures hit $1,000 an ounce before pulling back. Gold at $1,000 will probably seem a bargain sometime in the future, but in the months ahead, it could be a source of irritation. Corn, wheat…and industrial commodities…could be an even bigger disappointment…
March 14th, 2008 | Bill Bonner | 10 comments | Continued