May 5, 2011
YOU ALWAYS KNOW WHAT THE BLACK SWANS ARE:
The Gut-Wrenching Rout In Commodity Prices Suggests A Slowing Global Economy (Robert Lenzner, May. 5 2011, Forbes)
The unprecedented downturn in key resource prices is potentially dislocating of markets across the globe. Energy down 9% with the overall CRB commodity index losing almost 5% is at the very least the temporary bursting of a bubble. The decline in oil of about $9.50 a barrel was the second largest daily decline in energy prices in terms of dollars. Maybe, the alleged dumping of his gold position was George Soros figuring that the speculative fervor in precious metals had gotten out of hand.
Clearly, the price of natural resources and precious metals had gotten ahead of the actual growth of 1.8%, the weak housing and jobs picture, and attempts by India and China to slow their growth engines. Silver, which had been made subject to substantial margin requirements fell another 11%– or 28% in a week. What goes up can often go down even faster.
Posted by oj at May 5, 2011 5:33 PM
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