So much for the no inflation theory. Here's the latest from MarketWatch:
Gold futures up almost $13, end at highest level since 1980
SAN FRANCISCO (MarketWatch) -- June gold jumped $12.70, or 2%, to close at $636 an ounce in New York. That marked the highest front-month futures contract close since late 1980. May silver climbed 73.7 cents, or 5.4%, to end at $14.522 an ounce after reaching a 23-year high of $14.58 earlier. But May copper fell by 1.15 cents to close at $2.9595 a pound, following a record high of $2.985.
Comments (1)
Great blog. I read it often and really respect what you have to say--but is it possible that you're attributing too perfect a correlation between commodity prices and inflation? It seems like rampant speculation is occurring in several commodities markets e.g. gold, silver, and maybe oil. Granted, that doesn't explain the price of orange juice (necessarily), but I wondered if you think that speculation is exaggerating movements in commodities prices--and thus exaggerating any perceived inflation risks normally associated with rises in commodities prices.
Posted by Anon | April 20, 2006 9:01 AM
Posted on April 20, 2006 09:01