Slight demand destruction is not enough to bring commodity prices consistently down?

Discussion in 'Economics' started by crgarcia, Aug 28, 2008.

  1. Until we see massive overproduction, late 90s style; with new countries producing commodities for peanuts (like Vietnam producing coffee); commodities would not crash?

    I'm not saying we'll see historic highs by the day; rather commodities may become nontrending markets with very high volatilities (the hardest markets to trade).
  2. I agree that slight demand destruction is not enough. Just a pause in a longer term uptrend.

    I see no crash in the near future. The equilibrium of demand/suppply has moved way up.

    Unless a war happens and demand falls due to decreased population.