The Reuters/Jefferies CRB index, most widely recognized measure of global commodities markets, gained 14% this month, the most since July 1974.
Signs of a recovery in the global economy turned demand for natural gas, nickel, and crops in May into the best month for the CRB Index in 34 years. Crude oil posted the biggest monthly gain in a decade. Gasoline spiked over 30% in May. Gold, silver and copper surged, while corn and soybeans reached the highest in about seven months.
From Bloomberg: “The belief that the world economy is not going down into a black hole anymore has brought a lot of investors back in,” said Peter Sorrentino, who helps manage $13.8 billion at Huntington Asset Management in Cincinnati. “You also have the threat of inflation, and that means that people just want to have hard assets.”
Gold futures topped $980 an ounce today, and silver had the biggest monthly increase in more than 21 years. The CRB index gained 1.3% to 253.05, extending a rally to the highest since November.