Recent Trends in Commodities over the Last 10 Years


Commodity prices have remained volatile post recession although economies around the world are slowly recovering. In 2010, the recovery was accompanied by increasing energy and commodity prices. Gold has remained highly priced although in recent weeks there has been a dip in prices. With the growing unrest in the Iran/ Israel regions, the future of oil prices remains uncertain. Once thing is quite clear, binary traders who have invested in any of these commodities need to stay in tune with trends right now to make accurate investment decisions.

The Emerging Pattern  

Over the past 10 years, there appears to be a pattern that is emerging from the chaotic price movements. Starting from the 1980s and up to the first few years of the 2000s, the energy and commodity prices remained even. There have been price spikes ever since that have been analyzed by market experts. It appears that a spike may occur in this year and last well into the 2014. If this is the case, commodity binary traders should move in to take their positions to take advantage of a potential increase in prices in this sector.

Impact of the Supply Demand Equation 

A consistent price increase in commodities is a factor that most binary traders do take into account. One of the reasons for this is that new commodity sources are not that easy to find. Extraction and processing are not exactly cheap either. Considerable outlay and effort goes into making the commodity ready for the market. This is one important factor that keeps supply subdued.

Today, more people are aspiring to a higher standard of living than ever before and this has pushed up demand for both commodities and energy. Given this increasing demand and subdued supply situation, it is not surprising at all that prices are likely to be moving up in coming years. Add to this mix the volatile state of affairs in most economies and the predilection of many investors to move into commodities is quite easily explained.

Whether the world economies achieve stability, whether new supply sources are discovered, whether investors regain confidence in currency/ currency based assets and many more factors will all impact the prices of commodities and energy going forward. These are all factors that binary traders should bear in mind.

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