Commodities: The Supply And Demand Dynamics Are Beginning To Shift

As the Dollar comes down, it increases demand for commodities because they are priced in dollars and so when the U.S. Dollar goes down it brings down the price of commodities and demand is very sensitive to price, the lower the price the bigger the demand.

The supply and demand dynamics are beginning to shift and I think we are going to see much much higher prices as the year progresses and in the following several years. (United States Oil Fund LP ETF (USO), Nymex Crude Oil Futures, SPDR Gold Trust ETF (GLD), Market Vectors Gold Miners ETF (GDX))

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

Commodities Are Going Higher

It is the Dollar going down and also supply. The price is a function of supply and demand and there is a lot of reduction in exploration and production so that is also causing prices to go higher. But the Dollar has also been weakening, the Dollar is at a 7 month low against the Australian Dollar (AUD). The U.S. Dollar has been weakening considerably in recent months, weeks. (United States Oil Fund LP ETF (USO), Nymex Crude Oil Futures, SPDR Gold Trust ETF (GLD), Market Vectors Gold Miners ETF (GDX))

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

Commodities Are Turning

Commodities are turning, the U.S. Dollar is turning, gold is turning and this is just going to compound the problem for the Federal Reserve. Because now they are not going to be able to hide behind the fact that there is not enough inflation. We are going to get more inflation but it is going to be stagflation.

(SPDR Gold Trust ETF (GLD), Market Vectors Gold Miners ETF (GDX), Nymex Crude Oil Futures)

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.