The economic fundamentals of supply and demand remain the key factors in driving the direction of commodity prices and determining whether– commodity prices have risen by as much as 150% in the aftermath of the financial crisis. As long as China’s commodity demand grows at a higher rate than global supply, prices will rise.
The commodity super-cycle – in which commodity prices reach ever-higher highs, and fall only to higher lows – is not over. Despite the euphoria around shale gas – indeed, despite weak global growth – commodity prices have risen by as much as 150% in the aftermath of the financial crisis. In the medium term, this trend will continue to pose an inflation risk and undermine living standards worldwide...............................................Full Article: Source
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