phillips49

Are Current Commodity Prices as High as Compared with Previous Years?

Just to see how what I suggested might look, I pulled some data from inflation.com. They have a table of the average annual oil prices adjusted for inflation through 2007.
The average of 30 years of inflation adjusted oil prices from 1978 through 2007 was $42.70/bbl. The 2008 average was $98.66, so our current price is >100% higher than the 30 year inflation adusted average. That's quite a little bit different from taking the highest high.

Are Current Commodity Prices as High as Compared with Previous Years?

I love numbers, you can do just about anything you want with them. Take the highest-high, multiply by inflation and compare it to current price. I don't think that approach really tells us if commodities are fairly valued today. Maybe the average of the inflation adjusted yearly averages compared to the current year average would be more accurate.