Collapsing Commodities Point To Hard Times
Lately there have been a number of blogs that have noticed the collapse in commodity prices, such as this one on businessinsider.com. Included in that post was a histogram display of the year-over-year change in July commodity prices, which is shown above. Note that only uranium and aluminum spot market prices showed increased prices over the year. Every other commodity showed decreases, most being truly substantial decreases.
With the exception of oil, I have not heard of any great increases in supply for these commodities. If supply has not substantially increased for all but oil, the only reason for a general collapse in prices is a collapse in demand for them. Question: If our economy is healthy and growing, then why have prices for raw materials necessary for all manufacturing and construction collapsed?
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