#Central banks boosting commodities with “cheap #money”
Commodities may see a #rally with the recent moves by central banks to boost money supply and cut interest rates to shore up the flagging global economy. With the world market flooded by cheap money from governments, commodities will become more valuable, continuing the commodity supercycle that began in 2009. This is a sentiment echoed by #Goldman Sachs, whose analysts led by London-based #Jeffrey Currie predict a commodities rally in 2012 should the global economy avoid recession. Read more at Bloomberg.
Commodities had their worst quarter since 2008 recently on fears that Europe’s #debt crisis was spreading. With steps by the central banks to ease pressures on government lending and financial markets, the worst seems to be over for the commodities markets. However, could this just be the calm before the storm when the markets realise that the tools available to central banks are sorely lacking in dealing with the broad-based unemployment and structural issues plaguing the US and European economies? Could this be another bubble that will dissipate once investors start pulling out their money for safety?
All these questions, and more, will be discussed and debated at Commodities Week Asia 2012. Register now to secure your seat at Asia’s only leading commodity investment forum, where you can learn from global investors and experts.