User 142738

Burst Bubble? Commodities' Long-Term Story Remains Intact

I like how some of the commentators mentioned trading commodities on margin: isn't this basically moving the credit crisis from real estate to oil and gold?

I see it this way: people were buying homes on credit, expecting a huge return to outpace the high interest they borrowed on. Now people are buying both futures and physical bars of gold and silver with the same lines of high-interest credit.

History is repeating itself at an incredibly high frequency.