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Wednesday, March 30, 2011

Do you want to track commodities ?


A must visit site for people who want to track commodities.


Before investing in commodities we should note that, like all investments they have wide price fluctuations over time and it’s impossible to predict which commodities will be in favor and which will be out of favor and for how long.

To illustrate those price fluctuations, U.S. Global Investors produced what it calls the Periodic Table of Commodity Returns. That table shows how the price of 14 commodities have ebbed and flowed over the past the decade, and illustrates the principle of mean reversion — the concept that returns eventually move back towards their mean or average.

For instance, the table shows that palladium was out of favor in 2008, falling 49.29% that year, but in favor the following two years, rising 118.07% in 2009 and then 96.6% in 2010 & Lead was out of favor in 2008 falling 62.52% but gained 152.37% in 2009.

Let’s try to catch the trend for the year 2011.


http://www.usfunds.com/research/the-periodic-table-of-commodity-returns/