The prices of commodities are likely to crack short term, but this will be just a tease. In the next decades, the prices of all future raw materials will be priced as just what they are: irreplaceable. Oil, for example, will never again be priced on the marginal cost of pumping a marginal barrel from some giant Saudi oil field, as has been the practice for most of the last 100 years of oil production.
September 10th, 2008 | Chris Mayer | 0 comments | ContinuedAll Posts Tagged With: "commodity"
Commodity Inflation Causes Consumers to Cut Back on Spending
As commodity inflation bubbles over to retail price inflation, consumers cut back. Demand falls. The economy slows. Commodity prices drop.
July 1st, 2008 | Bill Bonner | 1 comment | Continued
Simple Monetary Inflation and the Decline in the Dollar Account for a lot of the Rise in Commodities
What do the commodity markets know that we don’t? Maybe they are simply confirming what we’ve seen signs of all this year: central banks are losing the war against inflation. Oil came slightly off the boil, closing below $100.
February 22nd, 2008 | Dan Denning | 0 comments | Continued