Investors are beginning to show concerns for inflation again, as they are buying gold and agricultural commodities. We have now seen a divergence between consumption commodities like energies and industrial metals, and food and safe haven commodities like gold and grains. As long as economic conditions remain weak, consumption commodities will also remain relatively week. However, as long as financial fear motivates people, and they can't get yield from fixed income investments without high risk, both food and precial metals futures will remain strong. This chart shows the surge in gold on today's intraday charts. Despite this, even crude oil has moved 7% higher today, pushing the Dow into positive territory for the day on energy company strength.Friday, December 26, 2008
Investors Betting on Inflation, Dollar Devaluation
Investors are beginning to show concerns for inflation again, as they are buying gold and agricultural commodities. We have now seen a divergence between consumption commodities like energies and industrial metals, and food and safe haven commodities like gold and grains. As long as economic conditions remain weak, consumption commodities will also remain relatively week. However, as long as financial fear motivates people, and they can't get yield from fixed income investments without high risk, both food and precial metals futures will remain strong. This chart shows the surge in gold on today's intraday charts. Despite this, even crude oil has moved 7% higher today, pushing the Dow into positive territory for the day on energy company strength.
