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Commodities Markets

History

History

Commodity-based money and commodity markets in a crude early form are believed to have originated in Sumer between 4500 BC and 4000 BC. Sumerians first used clay tokens sealed in a clay vessel...

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Performance

Performance

Commodities revenue at the top 10 investment banks climbed 26 percent in the January-March period, the first gain in first-quarter turnover since 2011, due to higher U.S. power and gas turnover...

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Gold

Precious Metals

Gold is one of the most commonly recognized precious metals and has been used as a means of trade for hundreds of years. The appeal with this precious metal began even...

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Metals

Industrial Metals

The demand side of things is only half of the story as underinvestment in new mines during the eighties and nineties was emphasized as the main reason of the start of this commodity bull market. Low...

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Energy

Energy

The energy complex is made up of oil, gasoline, natural gas, heating oil and carbon emissions. Energy no matter what its form is used by everyone each day. Unfortunately for us we are rapidly running out...

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Agriculture

Agriculture

Agriculture and soft commodities are used to refer to commodities that are grown as opposed to mined or drilled. Sugar, coffee, wheat, soy and rice account for a large percentage of diets...

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History

Commodities are a very simple investment; if supply is tight, prices usually rise. The Commodity Research Bureau (CRB) index tracks the price of a basket of commodities including metals and grains although it is heavily weighted to energy.

Through the 19th century "the exchanges became effective spokesmen for, and innovators of, improvements in transportation, warehousing, and financing, which paved the way to expanded interstate and international trade."Reputation and clearing became central concerns, and states that could handle them most effectively developed powerful financial centers.

Performance

1

During the first half of 2014 the US were undertaking their second quantitative easing program, effectively printing money to buy debt and support the market.

2

This led to robust growth through Q1 and the first half of Q2 with commodities amongst the best performing asset classes and metals accounting for a large proportion of those gains. From January lows to April highs gold and silver rallied 21% and 89% respectively.