ISHARES GSCI CMDTY (GSG)

All Comments on GSG

  • commenter
    dorvedor
    Apr 17 11:52 PM
    Who's to Blame for the Commodities Boom? [view article]
    Commodities are not in a bubble. There will be corrections along the way and they are volatile but it is not a bubble. Never before in the history of the world has there been such growth with almost a billion (with a B) people entering the middle class in the next ten years.
    They are going to want what you have: bigger house, new car, stainless steel toaster, air conditioning, etc. Even with a recession,
    nothing can change the math in the long run.     Reply
  • commenter
    Managing
    Editor
    Apr 17 10:03 AM
    My Website
    Who's to Blame for the Commodities Boom? [view article]
    Let's clear the air on a couple of points.

    First, about deliveries through futures. Historically, only 2%-3% of futures trades are settled by delivery. In the vast majority of cases, futures trades are offset (bought or sold) before a delivery occurs.

    Second, futures market making doesn't follow the securities model. Securities market makers are obliged to maintain two-way (bid/offer) quotes in their designated securities. Not so in futures. As a "local," I can bid, and bid ONLY, for contracts without an obligation to offer out any contracts.

    Last, if commodity-based ETFs and ETNs are blamed for adding speculative pressure on the upside, some balance might be acheived by floating "short" or "bearish" commodity index products which have the potential to augment short open interest. Short products have other utilities as well as pointed out in the HAI feature "Where Are The Short Funds?" www.hardassetsinvestor....
    Reply
  • commenter
    MiMi
    Apr 17 09:37 AM
    Who's to Blame for the Commodities Boom? [view article]
    You need to blame the US Government and its' central bank. Prosperity at ANY cost, dollar be dammed. And at the heart of it all, the most patronizing, cowardly and idiotic player of them all: Alan Greenspan. Reply
  • commenter
    bdograleigh
    Apr 17 09:22 AM
    Who's to Blame for the Commodities Boom? [view article]
    This writer is dead on. Everyone needs to relax out there regarding commodities pricing. BTW, if you are investing in non fixed income products you are speculating, period. And with the dollar tanking, you are even speculating with these financial instruments. Farming has been an unattractive profession for quite some time due to the difficulty to make money, small margins, etc. This, due to the market, has all changed so you will see more people farming their land because they can now make money which will increase supply and the price of commodities will find a nice balance. Commodities have been undervalued for a very long time. Our government is absolutely to blame for the large increase in commodity prices due to their horrific monetary policy. 9 trillion debt, easy money, etc. The dollar is pathetic. Anything the government does will make matters worse. Look at the ethanol debacle. Reply
  • commenter
    ericinNE
    Apr 17 04:07 AM
    Who's to Blame for the Commodities Boom? [view article]
    The Socialist/borderline Marxist nature of some of the replies here illustrate the mentality that will make it possible for someone like Obama to become President. Everything old is new again, eventually. Even when it's been shown to be a miserable failure. But, that's what happens when enough of the population make the same mistakes they were doomed to make, from failing to know history, let alone learn from it. Reply
  • commenter
    huskerbob
    Apr 17 12:14 AM
    Who's to Blame for the Commodities Boom? [view article]
    Yes! We need to end this ridiculous practice of letting the markets set prices. Why not have a central planning committee set a "fair" price for all goods and commodities, so that all can afford them, and no one is denied anything. Then we can have shortages of everything!
    Like many others have stated, if the price is "wrong", profit from it! Then you can give those profits from your abilities to each according to his needs.
    Shortages drive prices higher which spurs production and reduces demand which drives prices lower.
    The problem now is it's harder to boost production of many commodities, but high prices will pay for research, development, and marketing of replacements(like solar for coal, algae-derived fuel for diesel, etc.), and will spur people to find alternatives or modify their consumption. If we "fix" these high prices instead of letting the market provide solutions, we should get used to permanent shortages.     Reply
  • commenter
    minthila
    Apr 16 11:59 PM
    Who's to Blame for the Commodities Boom? [view article]
    The Commodity Sypercycle is still at play now beginning 2000 and undoubtedly, the Commodity Supercyclae is fueled by not only fundamentals but invariably speculators who are betting on demand from China, India as well as other emerging economies and also revitalized economies like Russia. Given strong and persistent demand from China and India which are trying to modernize their economies, one would logically believe that the commodity supercycle would definitely persist so that longing commodity items like wheat corn and soy beans seems logical and shorting stocks when the daily transaction volume shrinks appears reasonable too but one must be convinced that the commodity supercycle is definitely is volatile and would easy to get your fingers burned so that if we have to invest in commodity items, just do be very careful and should but your line of defense before you invest. Reply
  • commenter
    Johnc
    Apr 16 11:59 PM
    Who's to Blame for the Commodities Boom? [view article]
    Wow! Some of the comments here are scary!
    Speculators were not invented in the last 100 years. The process of price discover goes much further back than that. I would argue that the Government should work against markets getting "cornered" but other than illegal short term manipulation, the government has no business telling the market what the "right" prices are. If ETF's accellerate this price discovery, allow me to get some hedge against inflation and sends signals around the world about the money to be made by planting certain crops, developing promising new energy sources, re-engineering products to protect gross margins and a message to Central Banks about how we feel about their potentially inflationary policies....well, I'm not sure I see what the problem is.
    Economic dislocation will be the result. No denying it. Buggy whip makers, mainframe computer manufacturers and coal miners in England offer just a few well known examples of economic dislocation that happened well before commodity ETF's came on the scene.     Reply
  • commenter
    John Egan
    Apr 16 10:25 PM
    The Impact of the Beijing Olympics on Commodities Prices [view article]
    Regarding silverspring's comments on strangles and ETF's .. Suggest Powershares Ultra-Longs and Ultra-shorts.. Double your money, double your fun!

    Very interesting article. Re-reading it for the third time.

    Thx jegan ;-)     Reply
  • commenter
    Bela
    Ghoulashi
    Apr 16 10:07 PM
    Who's to Blame for the Commodities Boom? [view article]
    Okay, Sliv...you want a sharp reduction in global population?

    You go first.

     Reply
  • commenter
    SPDBRNR
    Apr 16 08:16 PM
    Who's to Blame for the Commodities Boom? [view article]
    Blame the Fed & our Govt that is so willing to debase our currency. There are radiclly strong fundamentals (China's growth is STILL not slowing down), combined with a financial disater brewed in the US, where the response has been to monetize crappy debt. That's inflationary folks!! Blaming the 'speculators' and ETF's is retarded. Reply
  • commenter
    chinesepetti
    Apr 16 07:57 PM
    The Impact of the Beijing Olympics on Commodities Prices [view article]
    I like to advise every readers here; My petti worked in Bear Stern before, the information is on this website seekingalpha.com/autho...
    Thank you Mr Petti for your disclosure! You are a great American     Reply
  • commenter
    Malkiel
    Apr 16 04:53 PM
    Who's to Blame for the Commodities Boom? [view article]
    Governments have an inherent interest in making sure that the essential commodities--food and fuel--are not being subject to artificial price inflation. It's a legitimate question to ask whether the new generation of investment products such as ETF's which allow retail investors low-risk access to commodities is having any unwanted effect upon pricing of essential commodities; I find it amusing, however, that toro keeps wringing his hands about gold, since that commodity has absolutely no industrial or economic function and serves as a perfect sponge for those retail commodity dollars to keep them away from the really valuable stuff, like corn. Go ahead, buy all the GLD you want, there's no danger of mankind being "crucified on a cross of gold" any more... Reply
  • commenter
    Sliv812
    Apr 16 04:04 PM
    Who's to Blame for the Commodities Boom? [view article]
    Isn't it obvious by now that globally emerging markets may spell the end of the human race? And that capitalism may work in a limited fashion, but not globally?

    Face it...the world is limited in its natural resources, whether that be food (of any kind), water, or energy. The planet at some point just can no longer support a growing global market for its natural resources, and with the rise in prices of all commodities, I'm afraid that this is what we are seeing.

    I'm also afraid the only true solution is a harsh one: a sharp reduction in the global population and/or a sharp decline the economies of all these emerging economies (or a rise in the number of impoverished nations). The world just cannot support growth in the economies for everyone AND low commodity prices - it just isn't possible. In this worst case scenario, if this trend continues as it has, I fear it will result in serious conflicts for resources amongst the nations of the world, with the end result being armageddon to the human race.     Reply
  • commenter
    E.D. Hart
    Apr 16 03:09 PM
    Who's to Blame for the Commodities Boom? [view article]
    The authors article is dead on. People are protecting their wealth by buying the commodities boom.

    What is a speculating anyway?

    Someone who thinks they know where the price is going to be at a point of time in the future. It has always been thus.

    I own 80% of my portfolio in long commodity based equities, and I'm outperforming the market, plus a few ETF's that are long silver and gold.

    Is this specualtion? Of course it is.

    Do I contribute to the problem? Incrementally, yes.

    Is it rational, right, and legitimate to do so? Well according to some yes, others no.

    The US government, and the current neoconservative cabal is anticonservative in the cpaital markets in ways that no other group has been in American history.

    Without commodities in my portfolio, I believe strongly that great wave of inflation currently hitting our economy would prevent me from ever retiring, or preserving my wealth.

    If the worlds average Joe is the one bearing the cost, well, diversify your portfolio friend.

    Unhappy about the price of gas? Buy oil/gas stocks with good growth profiles: DVN, CNQ, and PWE are a few of my favorites.     Reply
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