Monday, March 10, 2008

Rising commodity prices must affect inflation soon

Crude Oil Rises Above $108 to Record

"Crude oil rose above $108 a barrel in New York . Gold, platinum, wheat and soybeans have all been pushed to records over the past month as a falling dollar and rising demand spurred investor purchases".

Posted by alan @ 09:24 PM (674 views)
Please complete the required fields.



8 thoughts on “Rising commodity prices must affect inflation soon

  • Don’t tell us the price in USD. This is a UK site – tell us when it does something interesting in GBP.

    Reply
    Please complete the required fields.



  • It’s surely morally indefensible to speculate on the price of food. If we agree that basic rights amount to a roof over our head, water and food, investing in wheat etc. is surely worse than investing in housing (which everyone on this site seems to agree is pretty bad).
    Thoughts?

    Reply
    Please complete the required fields.



  • also sold to rent says:

    In my utterly inept opinion it’s the efficient use of capital, or at least as near efficient as we’re ever likely to get. If the fundamentals are there (which they are) then prices go up, then speculators join in pushing prices up, so producers can make more money and invest in wheat production and wheat becomes a more desirable commodity to produce, increasing supply where needed etc etc.

    Reply
    Please complete the required fields.



  • I agree with also sold to rent – the alternative is price controls which don’t work. The problem at the moment is that there is a lot of hot money floating about looking for a home, which has led to a great deal of speculation.

    Reply
    Please complete the required fields.



  • happyrenterz says:

    farmers have been ground down by the likes of Tesco for years. It will be good to see them earning more now instead of the banking debt mongers.

    Reply
    Please complete the required fields.



  • I think thats peak oil that is.. I can not understand why there is denial about peak oil.. its a bit like the north sea reserve.. its nearly gone we are outputting a fraction of what we once did.. and this/will be happening with most fields.. … its not that we will run out overnight but that we will not be able to meet demand.. the price will continue to rise. The world wide production stopped increasing has fallen slightly since 2004..

    Food prices are increasing because food is oil.. well food production is so dependent on energy in every stage of production.

    I think were really screwed.. I think this is why the denial exists…. its too bad to accept..

    When we all get to buy our houses.. I’d strongly advise living close to work.. those 2 daily commuting gallons will be costing ya £20 a day.. ~£400 a mth in the years to come….

    Reply
    Please complete the required fields.



  • Shipbuilder,

    Large food processors agree to supply cans of (say) baked beans to a supermarket chain for a fixed period. Prices are then fixed.

    If the raw materials are volatile in price, some speculation or futures dealings may be necessary by the food processors to ensure that the prices paid for the supply of raw materials do not suddenly spiral upward and cause the operation to be done at a loss.

    Reply
    Please complete the required fields.



  • shipbuilder says:

    Does investing in commodities not require the commodity to be physically bought and stored? It’s this I have the problem with, not investing in food companies, producers and the like? Perhaps i’m wrong?

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>