It seems that we are in the midst of a classic speculative boom in commodities at present, we must watch this situation closely for signs of distress. It is possible that a crash in commodity prices could also have flow on effects on other markets and the greater economy in general.
Commodity bull run may be in the final lap
"After a boom that took the prices of many raw materials to the highest levels in 25 years, the commodities market seems to be entering its final, manic phase."
" "Current high prices are unsustainable," Simon Hayley, an economist at Capital Economics Ltd said this month in an analysis of commodity prices."
"In the Internet crash, for example, some of the smaller Web companies found it impossible to raise cash at the start of 2000. By the end of the year it was impossible for any of them to find investors."
"In the same way, what's happening in the silver market today may well happen in other commodity markets within a few months."
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