This blog post originally appeared on RealMoney Silver on June 4 at 7:29 a.m. EDT.
"The collapse in the commodity index is telling us that the peak in global industrial growth is imminent; it's here right now. Markets are going to have to deal with the reality of a slowdown." -- Lakshman Achuthan, Economic Cycle Research InstituteOther than demand, there can be many outside factors to explain the movement in commodity prices, including but not limited to:
- changes in supply;
- the level of speculative and risk-taking activity;
- stockpiling decisions;
- increase/decrease in margin requirements;
- and fluctuating interest rates.