| The Greek government’s decision to hold a referendum on the latest creditor package shocked the bond and equity markets. Should there be similar fundamental or financial shocks for commodity prices? From a fundamental perspective, no. Greece as an economy contributes 0.4% of global GDP and its largest impact on the commodity markets – shipping – is unlikely to see disruptions as a result of the referendum.
The financial, or theoretical, perspective is different. We believe the fear of contagion and impact on currency markets will be felt most acutely in gold, crude oil and the base metals. For gold, the rush to a safe, tangible commodity has an obvious appeal...............................................Full Article: Source
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