Monday, October 19, 2015

Gary Shilling: Why Commodity Prices Continue to Fall

One explanation could lead to the notion of elasticity of demand. As prices rise, some buyers may seek alternatives to that particular good or service. As buyers stop buying those goods, the demand falls, causing the price of those goods to fall.

Key excerpt from the article:

“Supplies of almost every commodity are huge and growing,” writes Shilling in his latest Insight report. At the same time, demand is falling due to the slowing global economy, says Shilling, president of A. Gary Shilling & Co.

Read the rest here 

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