Brace yourselves people. The biggest advances in commodities this year may be over
because of mounting concern that policy makers aren’t doing enough to bolster
economic growth at a time when producers are expanding supply, according to a Bloomberg
report.
The Standard & Poor’s GSCI gauge of 24 raw materials
will end the year at 677, 3.1 percent higher than now, based on the median of
10 investor and analyst estimates compiled by Bloomberg. The index is 1.8
percent lower since the European Central Bank announced an unlimited
bond-purchase program Sept. 6 and 3.8 percent below its level when the Federal
Reserve pledged a third round of debt-buying Sept. 13.
That contrasts with a 92 percent surge from the end of 2008
through June 2011 as the Fed bought $2.3 trillion of debt in two bouts of
quantitative easing. The impact will probably be smaller this time, Barclays
Plc says. Prices are already in a bull market, the 17-nation euro area is
contracting and China has slowed for six straight quarters. Europe and China
represent about 60 percent of global copper demand and about 33 percent of crude-oil
consumption….
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