Home Les bulletins GEAB GEAB 148 Commodities: Towards an unsustainable volatility…

GEAB 148

The monthly bulletin of LEAP (European Laboratory of Political Anticipation) - 15 Oct 2020

Commodities: Towards an unsustainable volatility…

For the last 20 years, the international prices of many commodities have been set within a framework of globally recognised futures and spot contracts. Today, as many contracts detach from the delivery of the underlying physical commodity, volatility is surging on the back of QE and a host of new retail speculators have entered the marketplace; the whole system is becoming less stable. As on-line markets turn their attention to new speculators in search of quick cash settlements, many markets are demonstrably failing to fulfil their principle role as a distribution network for future production. We anticipate that in these rapidly evolving and volatile markets – driven by ever-increasing trade tensions ‘post-covid’ – the present global economic ecosystem will fracture even further, ushering in an era of more regionally based physical exchanges, bilateral trade deals and flexible pricing regimes. 

Comments

To leave a comment sign up now
The summary

For 12 years, the West has been struggling to understand the message of the 2008 crisis: "You are no longer the only ones on the planet!” The dollar, international organisations [...]

Back to reality all round. And if there is one area that has been seized by acute "virtualisation" in the last decade, it is technology companies. They have found themselves [...]

Remember! Back in 2017 we anticipated that Saudi Arabia would soon be selling its oil in yuan? This was a highly provocative hypothesis at the time, since the country was [...]

Everyone knows that democracy in general is sick. Nevertheless, the West continues to base the legitimacy of its world ‘leadership’ on this supposed civilisational superiority. In the 1990s, the wars [...]

The United Kingdom has not been in the EU since January 2020. As a result, it has been cut off from access to the European GPS system, Galileo, which it [...]

In a period of uncertainty and with the morose predictions that have constantly plagued it over the last ten years, the European car industry has undoubtedly taken advantage of the [...]

Recommendations: Treasure hunt This issue is packed with investment recommendations. Car sector, raw materials, technology stocks... we suggest you read it carefully then go on a treasure hunt! Samsung: Temporary [...]

Related articles
GEAB
15 Mar 2021

Investments, trends and recommendations (Mar 2021)

#bitcoin #commodities #finance #gold #investments #oil

A short guide for investors in times of reflation/inflation  In the current context of extreme uncertainty, we have put together a series of 8 recommendations and practical tips to get [...]

GEAB
15 Mar 2021

Silver Update – Crucial battle over price discovery in the second half of 2021

#commodities #finance #silver

After years of depressed prices as a result of short selling and the distraction of cryptocurrencies, the silver price is currently showing improved strength – even while it continues to [...]

GEAB
15 Feb 2021

Investments, trends and recommendations (Febr 2021)

#bitcoin #Crypto #finance #investments #oil

- > Currencies: Landslide - > Oil: Fire-exposed - > Raw materials: Heavy stuff - > Big Tech: Turnaround in sight - > Pharma: Run away - > Beijing Olympic [...]