keo

How Commodity Prices Are Hurting Global Economies

More monsanto style agritech ? Yes maybe. Solar ? Perhaps. New Oilfields ? Who knows. Better farm yields ? Well, why not ?

I see the problems you mention. We are getting out of a long bear market in commodities. Low prices formed no incentive to search for new resources. Companies did not invest in searching for oil for example. No new mines were opened. There was no money to be made. The situation is now changing.

I am not short in commodities. In fact, I have quite a lot invested in commodities (mainly using the RICI products). I believe in cycles. The commodity cycle is not over yet, but it will not last for ever either.

How Commodity Prices Are Hurting Global Economies

Not all economies are hurt, obviously commodity-producing countries are doing great. Canada, australia, brazil, argentinia, a number of arab countries are making tons of money. Commodities were way too cheap in the 90ies, so supply went down. Now, with higher prices, production will grow and prices will go down again (unless you believe in peak everything). Normal cycle.

Don't Get Caught in the Dot Commodity Bubble

I agree with theRealBull. There is a growing demand, supply cannot keep up. For some commodities, there is even talk of 'peak' (peak oil, peak gold). Where are the new major oil discoveries ? Even if there is one, it take years before the first drops will reach the markets. Similarly, it takes years before new mines finally start producing. Of course, nothing goes straight up; there will always be corrections in bull markets (even 50%, look at the dow or other indices).