Commodities move in cycles, just like everything. Supply and demand. And volatility is the difference of perception and reality. So at some point we have enough commodities and so the prices drop down, but then we don’t invest in commodities because we had too many of them. So then we have a lack of investment, but it takes a long time to get commodities to market. By the time we realize we don’t have enough, then we get into a real shortage. So then the prices spike. So then people reinvest and it goes back up and it’s a cycle.

And you can see these cycles like this. This is commodities. Now, a couple of things that I want to point here is that usually these big bulls happen in these inflationary periods. This market right here though was driven by China. When China was brought into the World Trade Organization and they began this massive push to industrialization. They were buying all the concrete in the world, all the wood, all the gold, you know, all these things. And they pushed commodity prices sky high. Now we’re witnessing another commodity cycle that’s taking off right now.

It doesn’t take a genius to recognize these patterns and we’re witnessing another one. But this time it’s not driven by China. As a matter of fact, China is going into a slump. This time it’s being driven by the G7, the top seven nations. [tr:trw].

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