The End of the Commodity Super Cycle



Comments (9)

  1. John Crowell says:

    What is your take on precious metal stocks? I.e. gold, silver, etc.?
    Thanks

    [Reply]

    Shelley Goldberg

    Shelley Goldberg Reply:

    Dear John,
    While gold and silver are correlated as silver tends to be a bi-product of gold, they are very different commodities in terms of the way they trade. Silver trades more like an industrial metal whereas gold acts more like a currency. The bottom line is that neither should see any strong rallies in the short to medium term. Gold has of course been considered a hedge against inflation as well as a secure investment in times of severe economic stress, however neither of these situations are with us at this time.

    [Reply]

  2. Jay says:

    She left out the BIGGEST cause of volatility, which exacerbates cycles: GOVERNMENT INTERVENTION!

    [Reply]

    Shelley Goldberg

    Shelley Goldberg Reply:

    Dear Jay,
    I did in fact address government intervention in terms of stimulus packages as well as government hoarding of commodities. Of course government also plays a role in regulatory issues with respect to trading. Please explain what in particular you are referring to. Thank you.

    [Reply]

  3. Silber SHARK says:

    K.I.S.S. : Keep Investing in Stacked Silver

    [Reply]

  4. Naveen S says:

    I think it is a deflationary trend world over. I observed the following problem across the geographical spectrum: Commodity price crash has only exacerbated this, not caused it.
    1. There is a property bubble in Canada
    2. Malaysia and Australia currency have crashed more than 25% versus USD
    3. China stock and currency, maybe soon corporate debt market($1.2 trillion) will implode. China govt monitoring market to ensure no one selling in big quantity. Mostly like an emergency situation has been created by those China authorities.
    4. Situation in US and UK is nasty.
    It is better to trim investments in stocks/bonds etc.. and keep cash in your local bank or community bank, credit union etc.

    [Reply]

  5. Erdinch Mevlit says:

    Can gold see 2008 price tag? If not, where will the gold land?

    [Reply]

    Shelley Goldberg Reply:

    Hello and thank you for your question regarding the price of gold. Gold fell to $733 per oz in 2008. While it is very difficult to predict the bottom, it could surely fall to that level. The better question to ask is, can gold fall to 2008 levels and if so, when!

    [Reply]

  6. Erdene, Mongolia says:

    For me, this was a very helpful reading. Thank you.

    [Reply]

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