In 2008, commodity prices experienced record spikes and slumps. Bernard Hickey reviews some amazing rises, and falls. Oil showed the the biggest gains, up to US$147/barrel, seeming to confirm the "peak-oil" doomsayers; but then it creashed to under US$40/barrel. In 2009 it has fallen even further. But it was not only oil that went on a roller-coaster ride. Most commodities were pushed to new price records based on exuberant US consumer demand fed by an enthusiatic Chinese 'factory'. The rest of the world was along for the ride. Gold, copper, iron ore, coal, wheat, milk, coffee, even real estate, all seemed to be in short supply as demand heated to extreme levels. But as fast as they rose, they fell. Without the underpinning of consumer demand from the world's largest economy, we found ourselves in a 'correction' that could hurt for years to come. Investment and political fads that seemed 'self evident' at the start of 2008 not longer looked so certain by the end. It was a year when we witnessed the greatest commodity boom-and-bust of all time. Are we ready to deal with the fallout?
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.