Great Commodity Bull Market

Long or short, there is only one side - the right side. The great commodity bull market, while having its setbacks and fair share of 'fear and doubt' headlines, continues to progress. A series of higher highs and lows defines a bull market, but there's still no shortage of bears.

Spot Commodity Prices: CRB Spot Index (1947 - Present);
16-Raw Industrial Spot Price (1935-1947);
Great Britain Wholesale Price of All Commodities (1885-1935):


The is a bull market driven by demand and currency devaluation. The later is more influential than the former.

Spot Commodity Price Index (CRBSPOT) to Gold Ratio:


Headline: Food inflation threat moves to top of Asia policy

SINGAPORE (Reuters) – Record high food prices are moving to the top of the agenda for many Asian policymakers as the prospect of higher inflation in 2011 poses a major threat to the region's strong revival from the global financial crisis.

The United Nations' food agency (FAO) said on Wednesday that food prices hit a record high last month, moving beyond the levels that prompted riots in 2008 in countries as far afield as Egypt, Cameroon and Haiti.

Source: yahoo.com

Unfortunately, market forces driven by supply/demand and currency devaluation, not centralized governments policies, clear price. The recent up tick in foodstuffs relative to all commodities implies another push to parity. Official price controls, if chosen, will only accelerate shortages.

Gold and CRBFood to CRBSpot Ratio: