Since the beginning of June, many of the major commodities have experienced significant rallies. Aluminum is up 20.3%, crude oil is up 11.5%, and copper is up 9.8%. During the same period stocks have only risen 3.5%.
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As we wrote in our August issue of Reminiscences, the recent rise in commodities "reflects world wide demand and not just US markets." Interestingly, one commodity which has done little or nothing as of late is gold.