COLUMN: “Let’s Shoot the Speculators!” by Robert J. Samuelson, Newsweek, 7-14 July 2008, p. 18.Obviously, the title is sarcastic. Point of piece is rising demand from emerging markets, that drive up prices in following percentages since 2002:
+ aluminum 95%
+ copper 360%
+ corn 70%
+ gold 125% (isn’t it ALWAYS a good time to buy gold?)
+ nickel 452% (screw gold, buy nickel)
+ oil 177%
+ steel 117%
+ zinc 314%.
Demand constitutes real power in this era, not supply.
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Comments (1)
Business Week reports over $2Trillion in hedge fund monies unreported and unregulated. Wonder if they are in commodities? I argue hedging and speculating are different arts and maybe different players but who knows. One finished material (cement) seems to be a real indicator since China just crossed the 50% consumption mark of world-wide supply. WOW!
Posted by William R. Cumming. | July 23, 2008 11:23 AM