Commodity Price Gains: Speculation vs. Fundamentals

Fawley, Brett; Juvenal, Luciana
July 2011
Regional Economist;Jul2011, Vol. 19 Issue 3, p4
Trade Publication
The article explains commodity price gains as part of market fundamentals and as a result of speculations. The influence of Mother Nature to the supply, current demand on metals, and demand for biofuels causing shocks on prices are explained. Speculations on commodities are focused mainly on futures market but a forecast on a bubble forming in the commodity market is also given. Policies to control the price gains, such as those made by India and Thailand, are also discussed.


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