Good documentary on commodities markets, speculation etc.

Published by Devang Bharania

Not an entirely true documentary but largely true. At the end of the day you always have the physical delivery mechanism that merges cash and futures prices at key delivery locations. Whatever speculators do might impact prices in the short term but that would translate into actions by producers (farmers in the case of soft commodities), end users and also physical traders who trade on a fundamental basis to balance the market. So speculators are good - they create opportunities, and liquidity for hedgers; but then again the market can remain irrational longer than one can stay solvent.

happy to hear your thoughts. 

https://m.youtube.com/watch?v=LGBM4WngZT4

1 Reply

thanks for sharing and a ...

thanks for sharing and a special thank you for summarizing it. i guess it remains difficult to make money :)

Published by max burger, Golien Ltd - Chairman