With almost every commodity known to man (not named cocoa or natural gas) sent to the stratosphere in 2010, one needs to ask if the speculator class will finally start pumping up those few left behind. Since supply and demand as a reason for prices to adjust is “so 2004”, it need not matter if U.S. physical inventories of natural gas are bursting at the seams… we have a fiat money tsunami to push into the market (every market) and we can only run up silver 2-3% a day, so many months in a row. Don’t look now but guess what commodity got 2011 off to a hefty start?
If this continues (clearing $5 will be important), just another one to add to the list of price pressures on both consumer and producer in the year ahead – as always, it won’t matter until it matters.
Disclosure: No position