19.03.2013 - The commodity super-cycle set to persist
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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