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Commodities - an asset class, really?

I have had some discussion with Larry Swedroe recently on wether commodities have earned the right to sit in our portfolios. I have come across some thought provoking opinions relating to the topic. To summarise:

1) One camp (e.g. Geremy Grantham) beleives, the prices will keep going up, due to increased demand, depletion of resourses, and easy money.

2) Larry Swedroe and portfolio theorists claim that commodities are an asset class, which does a great job in a diversified portfolio due to negative correlation to bonds and sometimes, stocks. Just add a small piece, play it safe.

3) Dylan Grice, and many value folks suggest that buying commodities is speculation, since they do not earn any risk premium, and you can't justify any fundamental value.

Thanks to @prudentinvestor, I think I have firmed up my opinion, that we should stay away from commodities. Here is my version.
The GSCI index, which was created by Goldman Sachs in early 90's followed by a massive flow of institutional money, (including through ETPs) created another 'asset class', and inflated demand beyond any reason. Some 'track record' was built to help portfolio theorists become even more comfortable with this asset class in portfolios. IMO this track record should not make us comfortable with commodities. The goods have not started producing any economic value since GS innovation. A market destined to hedge against price fluctuations now has become a giant casino, threatening global stability and creating food crises. As for the real (vs.speculative) demand argument, I agree with Grice: technology is making commodities obsolete and the prices should go down. Enter the upcoming singularity, folks!  We can produce enough stuff to feed this planet. Most speculators will be ruined one day (perhaps GS will escape?). Don't be one of them. Let us help ourselves and the third world by banishing commodities from portfolios!