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Commodities Briefing - Categorized | Metals and Minerals, Price Watch more

A rebound in iron ore prices? Who knows?

Posted on 21 January 2013

Most iron ore forecasts will be wildly wrong because of the jumpy and largely opaque nature of how the price series is generated. Forecasting commodity prices is like buying a second hand car. Only the car’s previous owner and perhaps the dealer really know what the car is actually like. In contrast you, the buyer, are an outsider with very limited insight and can only judge the car’s true value by what you see in the car yard.
Second hand cars, and iron ore, are classic cases of asymmetric information at work, pioneered by George Akelof’s 1970 study on the market for lemons………………………………………..Full Article: Source


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VRS - who has written 39895 posts on Opalesque Commodities Briefing.


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