We are likely witnessing the painful, undignified death of the commodity investment “supercycle.”
Oil prices cracked below $70 per
barrel after OPEC declined to cut production. Gold sank toward $1150 an
ounce after a Swiss vote to compel more central bank gold buying failed
and gold holdings in the SPDR Gold ETF (GLD) shrank to a six-year low. Copper sagged beneath $3 per ounce on tepid China manufacturing activity.
As I discuss with Yahoo Finance
Editor-in-Chief Aaron Task in the attached video, this collectively
represents a global phenomenon of not enough dollars chasing too much
“stuff” – an inversion of the classic (and flawed) monetarist definition
of inflation. (more)
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