Loading ...Eventually the distorted price gets too far out of line, and reverses. When Oil got to $145 it was too profitable and they started fracking in the USA and flooded the markets with oil, and DOWN it went to $28/bbl.
Naturally the $28 price caused production limits, on top of more use and waste because it was so cheap, and now its going back up. The Dopey/Dollar also is “played” on the futures markets. How can there ever be any price stability or equilibrium.
These days remind me of the 1987 to 2000 stock and dot com bull market. As long as that market went up, investors did not care about ANYTHING else inflation related. Classic cars stamps coins etc. The Dollar was so high on 120, Silver was $4 Gold $250? Copper .46 cents, heating oil .42 cents, steel was practically free.
When Bush got in they started dropping the dollar from 120 and put a tariff on steel and lumber until the lower dollar lifted the prices. It was also the START of Gold doing 12% APY for next 12 years in a row. In fact as the general market declined for a few years after March ’00, but commodity stocks started climbing after March ’00 and lifted the numbers that helped and led the general market back up.