In echoes of 2008, commodities, many at multi-year or all time highs, appear to be an accepted...


In echoes of 2008, commodities, many at multi-year or all time highs, appear to be an accepted asset class. "We are seeing investors flock to commodity resources," notes an analyst, "that pattern will continue regardless if prices move higher or lower." If they move lower?

Comments (6)
  • CRUDE GOLD
    , contributor
    Comments (370) | Send Message
     
    If they move lower?
    Waiting for that.
    It's not if.
    It's just when.
    10 Dec 2010, 08:24 AM Reply Like
  • rru2s
    , contributor
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    The only way that prices can move LOWER given that investors are constantly INCREASING their long investments is DUE to MANIPULATION. The big boys are preparing to put all of the reserves into shorting. They wait for the world to provide the news backdrop then short with leveraged money that really doesn't exist.
    10 Dec 2010, 08:39 AM Reply Like
  • youngman442002
    , contributor
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    Well if everyone is moving into commodities...who is buying all the stocks to keep their prices rising....and remember the people are pulling their money out of the funds...could it be GS computers playing and stuffing the markets...?
    10 Dec 2010, 08:39 AM Reply Like
  • kmi
    , contributor
    Comments (4579) | Send Message
     
    This is the problem, oil is higher than it should be historically speaking because it is now an asset class and there is a lot of investment capital that owns it in anticipation of appreciation rather than consumption.

     

    It's troubling to me because this is another way past deregulations have influenced for the worse our current situation. Personally I feel that current oil prices represent a significant drag on global economic activity that didn't need to be as it is.

     

    Also personally, my energy consumption in terms of oil is down 30% or more since 2007. Next year I expect to push it lower yet as I take advantage of alternative energy sources, and my free cashflow will increase.

     

    EDIT since this is SA I'd say I expect oil at $80+ for the protracted long term unless we get a slowdown in global goods consumption, and NG will continue to be better BTU for BTU for the forseeable future until consumption patterns change (increased demand via more folks switching fuels).
    10 Dec 2010, 09:06 AM Reply Like
  • Tony Petroski
    , contributor
    Comments (6356) | Send Message
     
    "{that pattern will continue regardless if prices move higher or lower." If they move lower?"

     

    Hint: They'll move nominally higher, but they'll really be the same.
    10 Dec 2010, 09:33 AM Reply Like
  • mikeybronx
    , contributor
    Comments (382) | Send Message
     
    prices of precious metals haven't gone up since 1980, the truth of the matter is that the U.S. dollar has depreciated and will contine to do so as long as the FEDS print currency and keep rates as is. prices for any metals never go up its just that the dollar is so very very weak. but investors think they making money on metals, but they are really betting on the dollar.
    11 Dec 2010, 03:15 PM Reply Like
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