“As Long as It’s a Commodity.”

The commodity markets are soaring again. Gold is over $600 an ounce, the highest since 1981. In London, oil made a new high. Silver is over $12 an ounce. Interestingly, the gold/silver ratio is still pretty high at 50-to-1. The Mint Act of 1792 pegged the ratio at 15.1-to-1.
From Bloomberg this morning:

“Commodities are the flavor of the month,” David Gornall, head of foreign exchange and bullion at Natexis Commodity Markets Ltd. in London, said in an interview today. “Gold, silver, zinc or copper, it doesn’t really matter what it is, as long as it’s a commodity.”

From Karl Marx in 1867:

A commodity appears at first sight an extremely obvious, trivial thing. But its analysis brings out that it is a very strange thing, abounding in metaphysical subtleties and theological niceties.

Heck, even Harvard is investing in timber.

Posted by Eddy Elfenbein on April 6th, 2006 at 9:25 am

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