Thursday, April 1, 2010
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?
Posted by Scott Grannis at 11:24 AM