We crib many times about different pressure and stress going on in our life, but if you analyse, an ordinary person today enjoys a standard of living better than any time in human history.
We additionally get pleasure from the things, generally (and adjusted for inflation) as low-cost as they’ve ever been. That’s as a result of humans have gotten higher at growing stuff, they’ve got higher at mining stuff, they’ve got more top manufacturing stuff. That’s progress.
Progress means there’ll invariably be a downward pressure on commodities prices and the comex trading, be it food, metal or fuel. Improved productivity pushes prices down. However, generally that downward pressure is so much that several businesses stop manufacturing altogether – mines go bust, or farms modify their business models – which will lead eventually to a shortage of the commodities.
That shortage then forces prices to go higher in turn affecting the comex market strategy. Therefore additional individuals then look to start manufacturing that commodity, till eventually the inflated offer forces prices backtrack once more, giving a rise in the comex signals. This method will generally take many years.
Surprisingly commodities are getting dirt cheap
Well, this is because the prices are masked with inflation. Relatively, if you see products, you’ll realize how affordable they are.
Here is a comparison between commodities and stocks between the Goldman Sachs Commodities Index and the Dow Jones index.
Today commodities as compared to stocks are filthy cheap. The last time they were this cheap was in the 1960s — and never before in the 20th century.
Next, we see commodities prices in the form of the CRB Index and the S&P 500. According to this, commodities are half the price they were in 2000 — and think such a historic opportunity it was to buy.
When the black line is falling, commodities are falling in value relative to stocks and the other way around.
This relativity inevitably goes to creep lower and lower over time, thanks to the dynamic of progress and productivity that I described. Corporations could grow much value. However, productivity has specified the price of essential commodities falls.
It’s merely extraordinary; however, the economy has shifted far away from reality and into digital. It’s owing to the quantifiability of numeric – code is instantly and infinitely replicated.
Don’t invest in stuff; Invest in technology.
Moreover, nevertheless investing in technology will cause you to a fortune – raise Jim Rogers or Alan Bond. Pick a winner in mining, and you’ll be able to create ten times more money than before.
However, once investing during this sector, it’s yet to remember that, in a way, investing in commodities is nearly like indulgent against human progress. Which has ne’er been a wiser bet?
This dynamic applies particularly to grains and soft commodities, which might be grown – less therefore to grease and metals, whose offer is finite. However nonetheless, some food for thought.
MONEY LIFE RESEARCH is a stock market research leader that specialises in dealing in KLSE stock market and SGX stock market. We aim to provide the right consultation to our clients coming from all backgrounds to help them sum up huge returns.
Providing Comex tips for UAE, UK, SAUDI ARABIA, US, AUSTRALIA and all over the world Investors & Traders.
If you want to trade in Comex market, you need to have a solid comex marketing strategy. You might agree or not but Comex as compared to stocks is relatively cheaper in today’s time. If you’re looking to make money from the commodities, you must invest in the right goods at the right time.