Applying Reason to Economics and Financial Markets

Visit Economic Reason

Futures Markets: Digging Their Own Grave?

Posted on May 22, 2008

The oil price shows signs of a typical speculative bubble, which could burst any moment now (see for example December 2010 crude oil). In the longer term, the fallout from the oil bubble could be a stricter regulation of futures markets and a more critical view of commodity investment via the futures markets. Both could tarnish commodity investment through the futures markets. However, the commodity bull won t care. Bullish speculators and investors will then probably have to resort more heavily to the shares of producers and, if available, the real thing. Possible consequences could be pric...

Original article link


precious metals