Appreciation Rates for Exchange Traded vs. Non Exchange Traded Commodities

Since speculation is the “hobgoblin du jour” for the rapid increase in commodities prices, take a look at this chart that looks at the difference in appreciation rates for Exchanged Traded Commodities vs. Non Exchange Traded Commodities.

As you can see the non exchange traded commodities have risen in price far more rapidly than the non-exchange traded ones, thus lending credence to the idea that supply and demand are the real issues here. After all, I seriously doubt that hedge funds are betting the farm on investments in rice, nor are they hoarding agricultural commodities in the supply closet in an effort to inflate grain prices.

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