Not only that, but commodities that aren’t a part of indexes, such as coal, have also experienced rising prices in recent years.
Instead of pointing fingers, Saft says it’s just a matter of looking at the fundamentals: demand is up in Asia and emerging markets; oil-producing countries are reluctant to step up production; and the U.S. dollar is weak, stimulating demand.
Whether it’s speculators, fundamentals or a full moon, the high cost of everything from food to energy should be a warning sign for us all that it’s time to change our habits. Who knows if life is going to remain this expensive or not? The fact is, fossil fuel is finite, and a lasting change is only going to come from a concerted effort to live in a way that involves using less of it. Perhaps the high prices were the kick in the pants we needed.
Wherever you land on the issue, it’s a free market. There’s no question that the rising popularity of ETFs and the assets in the commodity funds might be drawing investors out of the wordwork, individual investors and advisors have the ease of participating in this trend as long as it continues.
Today, oil prices rebounded to $135.83 a barrel.
