Commodities rush could be over - USA Today

[JohnWxy]

http://www.usatoday.com/money/markets/2008-08-06-commodities-oil-easing_N.htm

By Barbara Hagenbaugh and John Waggoner, USA TODAY


The commodity price boom is fizzling fast, a development that could ease inflation fears and lead to some relief for consumers at the pump, in grocery aisles and at the jewelers.
After skyrocketing earlier this year, prices for a wide variety of commodities, including oil, corn, wheat and gold, have fallen drastically in recent weeks, thanks to declining demand, a strengthening dollar and emerging signs of weakness in the global economy.

After skyrocketing earlier this year, prices for a wide variety of commodities, including oil, corn, wheat and gold, have fallen drastically in recent weeks, thanks to declining demand, a strengthening dollar and emerging signs of weakness in the global economy.

"The rush is definitely over," says Nathan Golz, futures researcher at broker A.G. Edwards.
~~
The Reuters-CRB Continuous Commodity Index, gauging the prices of a range of commodities, is down 16% from its July 2 peak. Still, it's up 25% from a year ago.

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Of course, it's over for now, but next year we will be seeing this happen again.__JW

[The_Casual_Observer]

1. The next bubble is going to be in "Green Technology" I hear.

Time to plan & make a killing somehow.

[xchrom]

2. we'll see -- i think the demand for certain commodities is going

remain 'high' for some time.

[GliderGuider]

3. To be replaced by a long, slow, steady rise?

I wouldn't be jumping up and down about a crash in oil prices just yet.

[JohnWxy]

4. to quote the last line in OP:

"Of course, it's over for now, but next year we will be seeing this happen again."__JW

[phantom power]

5. I think commodities are getting a temporary breather.

[NickB79]

6. And all it cost us was our economy

Before jumping for joy, bear in mind that the reason commodities are falling in price is that global economies are crumbling before our eyes. And crumbling economies don't tend to use up as much oil and metals as healthy, growing ones.