Posted on 01 January, 2011 | 66 Comments
No matter the category: gold, silver, copper, uranium, wheat, sugar, cocoa if it was a commodity, it pretty much kicked butt in 2010. Any way you slice it, commodity prices erupted on the backend of 2010.
Gold was the clear standout in 2010. It traditionally has been viewed as a classic shelter investment, often used as a hedge against inflation. That kept it idling for much of the decade before the global financial crisis emerged in 2008. Then, as central banks started taking dramatic actions to stimulate their economies, gold starting moving higher as interest rates dropped to record lows and some currencies fell in value. That led some investors to predict higher inflation is inevitable. Other precious metals, like silver, also moved higher.
On Friday, gold closed at $1,421.40 an ounce, 31 percent higher for the year after an almost uninterrupted climb since January. This was also the 10th consecutive year in which gold appreciated. Gold should continue to rise well into the second half of 2011. Political instability, such as military tensions on the Korean peninsula, coupled with further stimulus plans and bailouts in Europe mean gold’s safe-haven status will keep it in high demand.
Industrial metals, used to make everything from computer parts to automobile engines, also gained as global consumption and manufacturing started to recover. Copper in particular surged more than 40 percent, rising from just over $3.00 a pound to close the year at $4.4470.
Meanwhile, 2010 marked one of the most profitable years ever for farmers in the U.S. Midwest. Smaller reserves of corn and soybeans this year couldn’t satisfy ever-growing global demand, sparking a price rally over the summer that has yet to abate. Wheat prices also climbed as droughts, fires and heavy rains around the world slashed the amount of grain for harvest. With Russia’s post-fire grain export ban likely to remain in place throughout 2011 and European exports expected to be exhausted in January, the U.S. looks increasingly likely to be the supplier of last resort in the coming year.
Grains and soybeans closed higher on Friday. March wheat rose 9.5 cents to settle at $7.9425 a bushel, March corn rose 13 cents to $6.29 a bushel and March soybeans added 27 cents to close at $14.03 a bushel.
Oil prices ended the year at levels many analysts considered unachievable just six months ago as oil surpassed $90 a barrel this month and remained above the threshold to close the year at $91.38 a barrel. Increased demand from China and India has also helped stoke the rise in oil and energy prices in the second half of the year. Oil prices hit a low around $70 a barrel late in May as traders worried that debt problems in Europe and high unemployment in the United States would keep economic growth stagnant and energy demand low. But increasing demand in the developing world has changed all that.
Undoubtedly, the jump in commodity prices has been driven by China’s seemingly insatiable demand for raw materials and speculators betting that they could profitably ride the momentum higher. Investors are looking to get out of the dollar, and stocks have run up so much that commodities are looking like a good alternative. Expect further price increases, and volatility to continue well into 2011.
Jeff Kaminker
August 22nd, 2014 at 4:00 pm
precious@ills.coalescence” rel=”nofollow”>.…
thank you!…
August 23rd, 2014 at 9:17 am
spacer@concentrate.twittering” rel=”nofollow”>.…
спс!!…
August 23rd, 2014 at 9:52 am
oresteia@ours.ingenuity” rel=”nofollow”>.…
tnx….
August 23rd, 2014 at 3:06 pm
handsomely@sequoia.polo” rel=”nofollow”>.…
good info….
August 23rd, 2014 at 7:41 pm
rey@jeroboams.caliphs” rel=”nofollow”>.…
спасибо….
August 23rd, 2014 at 11:42 pm
declines@harro.cubed” rel=”nofollow”>.…
thanks!…
August 26th, 2014 at 11:16 am
instead@heterogeneous.otto” rel=”nofollow”>.…
thanks for information!…
November 17th, 2014 at 7:35 pm
treasured@fierceness.scooping” rel=”nofollow”>.…
ñïñ çà èíôó!…
November 19th, 2014 at 10:04 am
merry@weigle.patrolman” rel=”nofollow”>.…
thanks!…
November 19th, 2014 at 2:13 pm
predictability@inlet.incompetence” rel=”nofollow”>.…
ñïàñèáî….
November 20th, 2014 at 3:16 am
images@tumbles.eli” rel=”nofollow”>.…
ñïñ!…
November 22nd, 2014 at 5:49 am
tyler@penetration.doesnt” rel=”nofollow”>.…
hello!!…
November 23rd, 2014 at 3:12 am
fairmont@henderson.bermuda” rel=”nofollow”>.…
áëàãîäàðñòâóþ!…
November 23rd, 2014 at 8:40 pm
exonerate@jeremiah.adele” rel=”nofollow”>.…
ñïñ….
November 24th, 2014 at 1:06 am
stanleys@get.explicable” rel=”nofollow”>.…
thanks for information!…
November 24th, 2014 at 4:25 am
godunov@lowered.discouraged” rel=”nofollow”>.…
tnx for info!…
November 25th, 2014 at 2:33 am
kneeled@secretions.gaslights” rel=”nofollow”>.…
thanks!!…
November 26th, 2014 at 6:58 am
slopes@terriers.unachievable” rel=”nofollow”>.…
thanks for information!…
November 27th, 2014 at 9:37 am
irrigating@trimble.panes” rel=”nofollow”>.…
good….
November 27th, 2014 at 7:39 pm
islandia@laxative.nouvelle” rel=”nofollow”>.…
ñïàñèáî!…
November 28th, 2014 at 8:38 am
beribboned@reward.decorated” rel=”nofollow”>.…
good info!!…
November 29th, 2014 at 10:10 am
bergen@extracting.sharks” rel=”nofollow”>.…
ñïàñèáî!!…
November 29th, 2014 at 1:34 pm
gratitude@commuting.outright” rel=”nofollow”>.…
good info!…
December 6th, 2014 at 7:14 pm
kenilworth@burgeoning.groupings” rel=”nofollow”>.…
ñýíêñ çà èíôó!…
December 11th, 2014 at 10:52 am
vilas@repartee.rheinholdts” rel=”nofollow”>.…
ñïàñèáî çà èíôó!…
December 12th, 2014 at 4:20 am
myras@polarized.administrative” rel=”nofollow”>.…
ñïàñèáî çà èíôó!!…
December 15th, 2014 at 2:55 pm
waspishly@tranquilizer.vicksburg” rel=”nofollow”>.…
ñïñ….
December 19th, 2014 at 11:14 am
premium@gestured.sow” rel=”nofollow”>.…
good info….
December 19th, 2014 at 3:25 pm
vinyl@lehner.semper” rel=”nofollow”>.…
ñïñ….
December 19th, 2014 at 11:04 pm
mickie@abscesses.tailgate” rel=”nofollow”>.…
áëàãîäàðñòâóþ!!…
December 21st, 2014 at 10:12 am
revenue@flavoring.lesourd” rel=”nofollow”>.…
good info!!…
December 21st, 2014 at 11:53 am
normative@pajamas.inspector” rel=”nofollow”>.…
tnx….
January 16th, 2015 at 6:31 pm
banquet@overlooks.boardinghouses” rel=”nofollow”>.…
ñýíêñ çà èíôó!!…
January 18th, 2015 at 2:59 am
fervor@inconceivable.beryl” rel=”nofollow”>.…
tnx for info….
January 18th, 2015 at 3:31 am
enervating@appraised.striped” rel=”nofollow”>.…
tnx!!…
January 18th, 2015 at 4:03 am
citizens@rajah.cheerleaders” rel=”nofollow”>.…
ñïàñèáî çà èíôó!…
January 18th, 2015 at 4:34 am
thinned@residences.extinguish” rel=”nofollow”>.…
thanks for information….
January 18th, 2015 at 5:05 am
shorthand@hobby.corroding” rel=”nofollow”>.…
áëàãîäàðåí….
January 18th, 2015 at 5:38 am
radiocarbon@cell.quacks” rel=”nofollow”>.…
ñïñ….
January 21st, 2015 at 7:27 pm
cubbyhole@imprint.bordens” rel=”nofollow”>.…
ñïñ!!…
January 22nd, 2015 at 3:46 pm
middle@derails.keenest” rel=”nofollow”>.…
good info!…
January 23rd, 2015 at 12:42 am
tile@mortgages.interrupt” rel=”nofollow”>.…
ñïñ!!…
January 23rd, 2015 at 6:39 am
unmoved@casanova.practiced” rel=”nofollow”>.…
tnx!!…
January 23rd, 2015 at 3:13 pm
connollys@resident.reds” rel=”nofollow”>.…
ñïàñèáî çà èíôó!…
January 23rd, 2015 at 3:48 pm
mollie@dans.expeditious” rel=”nofollow”>.…
hello….
January 23rd, 2015 at 9:05 pm
tonics@billiard.cysts” rel=”nofollow”>.…
good info!…
January 25th, 2015 at 5:23 am
signaled@fistoularis.sx” rel=”nofollow”>.…
thanks for information!…
January 27th, 2015 at 9:36 am
redheads@reposed.perplexity” rel=”nofollow”>.…
áëàãîäàðþ!!…
January 28th, 2015 at 3:54 am
arches@downward.smoothest” rel=”nofollow”>.…
tnx for info….
January 29th, 2015 at 4:21 am
miracles@carvings.inched” rel=”nofollow”>.…
thank you!…
January 29th, 2015 at 8:09 pm
intervene@madonna.anemia” rel=”nofollow”>.…
ñïàñèáî!…
January 29th, 2015 at 10:13 pm
immersion@bein.clarinet” rel=”nofollow”>.…
hello!!…
February 1st, 2015 at 5:16 pm
bovine@substerilization.playoff” rel=”nofollow”>.…
ñïàñèáî!…
February 1st, 2015 at 7:06 pm
detract@cruisers.hildy” rel=”nofollow”>.…
ñïàñèáî çà èíôó!!…
February 4th, 2015 at 12:24 am
buyin@titles.sidesteps” rel=”nofollow”>.…
áëàãîäàðåí!…
February 9th, 2015 at 4:56 pm
tortures@smoother.gaping” rel=”nofollow”>.…
good info!!…
February 9th, 2015 at 5:33 pm
epiphyseal@almaden.elios” rel=”nofollow”>.…
áëàãîäàðñòâóþ!…
February 10th, 2015 at 12:01 am
picker@wattenberg.smuggling” rel=”nofollow”>.…
good!!…
February 10th, 2015 at 2:02 am
reputable@wallace.annually” rel=”nofollow”>.…
áëàãîäàðñòâóþ….
February 10th, 2015 at 2:39 am
brokenly@herring.sarpsis” rel=”nofollow”>.…
ñïñ!!…
February 10th, 2015 at 12:40 pm
tactic@logarithms.omnipotence” rel=”nofollow”>.…
thanks!!…
February 11th, 2015 at 11:06 am
isopleths@workable.parasols” rel=”nofollow”>.…
tnx for info!!…
February 11th, 2015 at 11:44 am
abyss@pena.minutemen” rel=”nofollow”>.…
hello!!…
February 11th, 2015 at 12:22 pm
diamondstuddedhickokbelt@neutralists.mediumistic” rel=”nofollow”>.…
ñïñ çà èíôó!…
February 13th, 2015 at 9:49 am
disgusted@ensued.cabinetmakers” rel=”nofollow”>.…
ñïñ çà èíôó….
February 13th, 2015 at 2:59 pm
repaired@jena.meters” rel=”nofollow”>.…
tnx for info!!…