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Speculative and financial capital is circulating in waves through the various markets. Coordinated by interest rates, currency movements, growth in different sectors and regions, submarkets such as the tech sector currently see intermittent boom and bust phases, bubble formation and normalization.
Investors in commodities and precious metals know real suffering: they are the beaten dogs that have been underperforming on the world's stock markets for many years.
But if we look at the relationship between commodity prices and the US stock market as the leading stock market in the world, it looks as if we have reached the bottom, as if we are on the verge of a commodity comeback. This is also very realistic in geopolitical terms, given the misguided energy policies in Europe and the United States, where ideology-driven policies have suppressed investment in the key commodities oil and gas, which can lead to artificial shortages.
Gold, the number one precious metal, has already emerged from its years-long drought and commodities such as industrial metals and agricultural commodities will follow. The great capital rotation is on its way. Those who have a currency that is not backed by energy, such as the euro, must be prepared for a rise in inflation in the coming years.
We are entering the phase in which one factor is decisive for monetary policy: collateral.
this chart is interesting and relates to the theme of this post.

A History of Resource Extraction & Acceleration
According to figures published in the UNEP’s Global Material Flows Database, extraction of four main material groups - biomass, fossil fuels, metal ores and non-metallic minerals - has skyrocketed in the past 50 years. Where a total of 31.1 billion tonnes of these combined materials was extracted from the Earth in 1970, when the UNEP’s records began, that figure is estimated to hit 107 billion tonnes this year.
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Thank You. Interesting chart
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Is it time for the Jim Rodgers trade?
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Poor guy was waiting half of his life.... Energy will be a good trade when recession hits and sends markets down
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Have banks created a Hell on Earth?
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Thanks. I'm looking forward to the next big round of bail-outs in Europe and the emotional explanations by our parasites why it's necessary to rob us blind
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Yes, I agree that we're just about to enter a phase where the no. 1 choice would be investing in commodities and Gold would be the biggest propoganda. But that would also lead to a boom bust cycle and finally people will realise that Bitcoin has to be the way ahead.
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So far, it looks as if the world's major central banks are buying up gold stocks, especially in Asia. With a drastic revaluation of gold in the five-digit range, many a central bank balance sheet would be repaired and the damage of the past decades quickly forgotten and the next round of fiat credit could be heralded.
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the global economy has not only slowed down materially, but is even in recession in some areas. This means lower demand, which translates into lower commodity prices and lower returns for the most optimistic investors in the sector.
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We also have to know that this is a political game, because we are in the game phase of the world of politics.
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The long-run trend is cheaper commodities. That was the point of the famous Simon-Ehrlich bet.
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42 sats \ 1 reply \ @TomK OP 1 Aug
Maybe he's wrong... oil will be much higher after the recessionary shock. Pricing power moved to the producers
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Well, he already won the bet. I agree that we could see a spike in that ratio: commodities 2x while S&P 0.5x.
The point is just that as the world gets more productive, inputs become cheaper in real terms.
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good chart! Can we conclude that both commodities and the sp500 have grown in more or less the same way since 2010?
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I also see commodities underperforming in this decade. At least gradually
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The drought has been very long for gold and silver. Even though the ratios are still off from where they should be. I feel a lot of this generation believes in digital currency as being the new gold.
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20 sats \ 1 reply \ @TomK OP 1 Aug
There is no question that Bitcoin is superior to gold, but if you look at how the central banks are hoarding gold in Asia, we may experience a decade of precious metals for the time being
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That is true. But I believe they arent just hoarding gold, they are also starting to wet their feet in bitcoin or cryptocurrencies.
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stackers have outlawed this. turn on wild west mode in your /settings to see outlawed content.