Reduced Commodity Trading Indicates Dire Days Ahead92 views 2013-07-01 03:37 Tags: blank better growth target
I’m the first to admit that the economy is faring much better than it was a few years ago—back when America entered into the Great Recession. Manufacturing is continuing to grow in the United States, and even though that’s at a slow pace, pundits seem impressed with the growth.
But if the U.S. and global economy are on the mend, then why is there actually a decline in the prices of those commodities used when economies are growing?
You would think that commodity prices should be stabilizing and showing signs of edging higher if the global economy was expanding—but they are not.
The price of spot gold is down 36% from its peak.
Silver, used in electronics and industrial goods, has fared even worse, plummeting 61% from its peak.
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Oil, the fuel driving the supposed economic recovery, is down 28% from its peak a few years ago.
Copper, used in the housing, electronics, and industrial markets, is down a whopping 65% from its peak.
Continue Reading: Reduced Commodity Trading Indicates Dire Days Ahead