Use the Commodity Boom discussion thread to discuss the recent commodity trends
ID: 2807469 • Letter: U
Question
Use the Commodity Boom discussion thread to discuss the recent commodity trends here in the United States and throughout the world.
Are commodities a good investment right now? What type of impact does a weak US dollar have on the commodity market? The price of wheat, oil, gas, and gold are all on the rise. What is the explanation of this and how do events around the world impact the commodities market here in the United States? As consumers, do we rely too much on non-renewable resources? If so, would you say that our use of these products impacts their value on the commodities market?
Explanation / Answer
It is being already said that the price of wheat, gas and gold are all on the rise. This means that the essential commodities as well as luxuries prices are on the ignite. This assures right away and speaks volumes about not making a commodity investment in the instant. The rising prices of commodity especially the basic essentials depict the growing demand in the BRICS countries and the power of the emerging middle class population.
The weak us dollar shares an inverse relationship with the commodity market. Historically, the weak dollar has supported commodity prices.
When it comes to using non renewable resources, majority of the world population is still highly dependent on petroleum products and coal energy for their fuel needs. The existing demand and limited supply ignites the prices of these products and has a long lasting impact on the market as a whole. Use of non renewable fuel energy is still on the rise and until and unless world population whole heartedly embrace the renewable sources as fuel supplement such as natural gas and solar energy the commodity market will maintain its current position of rising prices.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.