Comments on: Has the increase in commodities trading raised the price of goods? http://commoditytradingquestions.org/commodity-trading/has-the-increase-in-commodities-trading-raised-the-price-of-goods Answers to all your questions about commodity trading. Wed, 08 Sep 2010 07:07:52 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Sparky the Greek http://commoditytradingquestions.org/commodity-trading/has-the-increase-in-commodities-trading-raised-the-price-of-goods/comment-page-1#comment-1843 Sparky the Greek Tue, 02 Feb 2010 06:18:14 +0000 http://commoditytradingquestions.org/commodity-trading/has-the-increase-in-commodities-trading-raised-the-price-of-goods#comment-1843 Absolutely, it drove up tech stocks, the mortage mess and now commodities. Hello G, you are spot on! Absolutely, it drove up tech stocks, the mortage mess and now commodities.

Hello G, you are spot on!

]]> By: Hello G http://commoditytradingquestions.org/commodity-trading/has-the-increase-in-commodities-trading-raised-the-price-of-goods/comment-page-1#comment-1842 Hello G Sun, 31 Jan 2010 15:35:27 +0000 http://commoditytradingquestions.org/commodity-trading/has-the-increase-in-commodities-trading-raised-the-price-of-goods#comment-1842 It is very possible. Speculation by people who do not have a stake in the physical product artificially increases demand. Without a corresponding increase in supply, which almost all commodities have relatively fixed short and medium-term supply, prices increase. I am sure there is literature on the empirically observed effects of speculation on commodity markets, but the theory is fairly straightforward. It is very possible. Speculation by people who do not have a stake in the physical product artificially increases demand. Without a corresponding increase in supply, which almost all commodities have relatively fixed short and medium-term supply, prices increase.

I am sure there is literature on the empirically observed effects of speculation on commodity markets, but the theory is fairly straightforward.

]]>