Are We on the Cusp of a Commodity Bull Market?
In this report I look at the commodities market and analyse whether the CRB/CCI Index and its components are showing signs of bottoming. I also look at the relationship between commodities and the dollar.
Continuous Commodity Index: https://en.wikipedia.org/wiki/Continuous_Commodity_Index
Thank goodness. It's about time. Precious metals have been suppress too long.
I agree, it's due and high time. Good post.
@steppingout23 Thanks.
nice
Thanks
It's been a very long time coming so i sincerely hope so! My AIM portfolio could do with a kick up the backside that's for sure!
It's possible in the medium but gold is looking a bit ropey right now. I was hoping for a big breakout in gold be I think we will have to wait at least until the autumn now, possibly even 2018.
One real risk is the loss of control by the Federal Reserve over interest rates. Lik e you mentioned, Volcker hiking rates to 20% certainly slammed commodities and could do so again.
I'm not suggesting that interest rates will be raised to that level, but with a 19 Trillion dollar overhang of debt on the US Dollar, there certainly isn't much room even with the quarter-point hikes that Yellen and company are planning.
Ultimately, I think that Gold and commodities in general will be a bit weaker and eventually swing the other way. Still have to get more debt out of the system before that can happen.
@maneco64 I hope you're correct and commodities breakout! 👍
@ronmamita The signs are pointing to it in my opinion. Let's see if it happens. Time will tell.
@maneco64 ha-ha, for the sake of other readers I should be more specific and say I hope it spills over into the silver price climbing higher LOL 😃
We've waited for a long time for a bull run in metals and we've had many false starts. Hopefully this time it will happen
Let us hop you are right,
Its been very dry in Australia during June and is likely to impact on grain crops. I am not surprised wheat is spiking. I have seen some crop damage in North America that could lead to a grain shortage next year. We need to keep an eye on the weather.
Commodities are non paper assets. People need to eat. Whether you are into global warming or the grand solar minimum. Food production is getting harder. Commodities bull market - yes - however - I think food shortages and paper money are going to drive commodities over the next few years.