Amid economic turmoil we have seen a substantial rise in commodity prices as many investors see them as a hedge against a slowing economy. What is going to happen when GDP growth rebounds to its average levels? Will investors flee and prices collapse? I don't know but click the title for an interesting article from the Economist about the growing Chinese appetite for commodities.
An excerpt:
...China is still just one of many countries looking for raw materials around the world. It has won most influence in countries where Western governments were conspicuous by their absence, and where few important strategic interests are at stake.
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3 comments:
Though i do not trade commodities, I think they have room to run up. Not so much in crude oil, but gold hit $2,100 per ounce (inflation adjusted) in the early 1980s. I have commodities as investments, but i thin 2008 is going to be about "green" tech and commodities
See my post above...and backstops like "green tech" will continue to be popular, but their widespread implementation will be limited until their price comes down significantly.
Or if oil prices keep going up significantly.
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