Thursday, April 1, 2010

Commodity prices continue to rise

Most major commodity indices are moving to new highs for the year. The top chart shows copper prices, which are now up 185% from their late-2008 lows, and up 485% from their late-2001 lows—a sextupling of prices. The second chart shows crude oil futures, which are now at a new high for the past year. Crude prices are now up 654% from their 1998 lows—that's a septupling of prices in just over 10 years! Gold prices have more than quadrupled since early 2001, and are up 55% from their late-2008 lows, which occurred just around the time the Fed started pumping over $1 trillion of reserves into the banking system.

It sure is a good thing that, according to the Fed, we don't have to worry about inflation, isn't it?


John said...

One of my favorite stocks is BHP Billiton, the Australian mining conglomerate. The share price closed today at a new high for the recovery. Looks like its going higher. Very consistent with the strength of many commodity prices.

This action does not look like what one would see in a weak global economy. Output is increasing and access to commodities are essential to global manufacturers. No way this does not impact economic activity in the US.

It is really too bad you still can't melt and pour the average retail investor into the stock market. Volume is still light and fears of a correction still plague investors. There may be a correction looming but I believe it will be shallow and will afford those who have missed the initial stages of this bull an opportunity to get in at more reasonable prices.

Thank you Scott for your efforts in this blog.

septizoniom said...

what would g.c. selden say about you!

John said...


I have no clue who gc selden is nor do I care. Neither do I care what he says or thinks about me.

Frankly, not once have I seen even a reasonably intelligent post from you that makes the slightest contribution to the subjects this forum seeks to explore. You only seem to be concerned with ridiculing those whose opinions and interests differ from yours.

This is not my blog. But if it were my blog, I would be getting pretty close to telling you to take your third grade social education and hit the road.