Commodities Review September 2011

The month of August marked a stretch of great volatility for global markets. The paranoia over a second recession in a decade hitting the world has driven new investors away and rendered experienced ones wary. The fluctuating nature of the market made making sound investing forecasts a virtual impossibility, and has also rendered many commodities much too unreliable to warrant the risk. However, of the lot, a few products still received fair amounts of traction, and the following is a brief analysis of three of them:

Crude Oil – With equities proving to be so difficult to pinpoint, crude oil investments suffered a few major hits. At one point in the month, the price for the oil commodity fell below $80 a barrel, a staggering number. Despite such a drastic decrease, crude oil now seems to have made a recovery, with its prices settling at around the $89 a barrel. The commodity’s demand has also risen during the month of August, with a 48% raise from the previous month of July. Overall, crude oil, along with its energy counterparts have accounted for 35.5 billion in volume, with crude oil alone representing 17 million for the lot. These figures promise an increased interest in the product in the months to come.

Natural Gas – Natural gas has long since been one of the most demanded commodities around. Investors flock to its figures in the hopes of striking a profit from the elevated volume and volatility rates. August figures showed a 30% rise over July, keeping the gas commodity popular among investors of all sorts. As with oil, natural gas investments hold steady despite a weakening macro-economy because these commodities are always in demand.

Gold – Gold has received fair amounts of attention over the past few months, with its prices rising past $1,900 an ounce. Such an extreme rise has put some investors off, as concerns were raised over the metal becoming overvalued. Yet all minor setbacks aside, the metal commodity has proven to be quite popular, and its August figures soared an astonishing 193% in just a mere month.

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