Commodities Head for Biggest Monthly Increase in 32 Years

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ASusilovic

Commodities headed for the biggest monthly gain in 32 years, led by wheat, crude oil and gold, as the dollar's slump enhanced the appeal of energy, grains and precious metals as a hedge against inflation.

The 19-commodity Reuters/Jefferies CRB Index was up 8.7 percent this month, the most since July 1975. Wheat climbed to a record in September amid a global grain shortfall, boosting corn and soybeans. Oil also hit a record, and gold reached a 27-year high. The Federal Reserve cut borrowing costs to bolster the U.S. economy, sending the dollar tumbling.

``The Fed has signaled pretty clearly that they will answer the problem of a slowing economy with greater liquidity,'' said Chip Hanlon, who manages $1 billion at Delta Global Advisors Inc. in Huntington Beach, California. ``We're in a bullish phase for commodities.''

The CRB Index rose to 334.50 at 12:35 p.m. New York time from 308.76 on Aug. 31. Wheat reached a record $9.5125 a bushel today. Crude oil climbed to $83.90 a barrel, the highest ever, on Sept. 20 and approached the record today. Gold rose as high as $752.80 an ounce today, the highest since January 1980.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aPttN5PY7Uhg&refer=home

I think that´s the kind of headline presaging commodities cyclical highs...but maybe Jim Rogers is right...who knows ? Just my humble opinion...:)
 
Quote from stock_trad3r:

people need to eat

they need wheat

the also need oil for cars and factories, airplanes

booming global economy needs commodities.
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Booms are always followed by busts. So for now party on!
 
Quote from S2007S:

Nope no inflation,

Bread is only $3.79

Milk, only up about 18% in the lat 3 months.


hmmmmm...




:p :p :p :p :p
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you must strip out everything you need to live on, then their is no inflation wink wink!
 
There is no inflation as long as you don't live in a home, pay for utilities, buy food, or drive a car.

If you are ok with picking through garbage cans looking for food and living in a cardboard box or living on an island in a hut eating fish and coconuts, you will never experience inflation or taxes.
 
Quote from Vinny1:

There is no inflation as long as you don't live in a home, pay for utilities, buy food, or drive a car.

If you are ok with picking through garbage cans looking for food and living in a cardboard box or living on an island in a hut eating fish and coconuts, you will never experience inflation or taxes.
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you've just defined the Fed model for "substitution" which in short, says if the price rise is too much for you, you'll settle for something else and by doing this, you experience no inflationary harm...

since you're living in a cardboard box, you have next to no expenses and are able to save money, which according to the Democrats, is taxable unrealized income
 
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