Thus, during the era of commodity money in England, lenders were willing to float bonds (consols) without any redemption dates, and interest rates remained relatively low and stable.
Not a commodity, money is merely a measuring stick that facilitates the real exchange of wealth.
The commodity used as money should not lose value when it is bought and sold.
Historically, commodity prices, particularly gold, have been instant indicators when a central bank prints too much money (commodity prices uniformly zoom up) or too little (commodity prices generally fall).
Investors poured money into commodity strategies, corporate bond strategies, and Asia focused funds.
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This policy helps Wall Street make money on commodity speculation and staying short the dollar, while Main Street USA struggles with the higher cost of living resulting from higher energy and food costs.
Gone are the 10 percent growth days fueled by easy money and rabid commodity demand.
Brian Hunter, the gas trader, tried to raise money for another commodity fund, Solengo Capital, until he was sued by the Commodity Futures Trading Commission and named in an administrative action by the Federal Energy Regulatory Commission.
At which point the problem reverts back to the previous problem facing any central bank trying to manage a fiat currency a problem the post-Bretton-Woods experience has revealed to be insoluble without a market-based link to a hard commodity like gold to reveal money demand through the price mechanism.
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Regardless of which commodity you choose to put your money in, be sure that the macro fundamentals play into your thesis in the near term and the long term.
Commodity prices, a barometer of excessive money creation, are depressed, except for OPEC-manipulated oil.
Kudlow is also eloquent on why gold and commodity indexes are vital tools for sound money.
It is also well known that long-run price stability was achieved under commodity standards but never under pure fiat money.
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Economists warn that resource-rich Indonesia is especially vulnerable to falling commodity prices, which could also pull money out of the pockets of mining workers.
Money managers tracked by the Commodity Futures Trading Commission this month cut their bullish bets on gold futures and options to the lowest level in more than four years.
James Madison, the chief architect of the U.S. Constitution, recognized the problem with discretionary government fiat money and the benefit of a commodity standard and convertibility long ago.
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If crude oil prices continue to trend higher in the near term, that could spark fresh speculative money to flow into the raw commodity sector, including the precious metals.
Importantly, if crude oil prices continue to trend higher in the near term, that could spark fresh speculative money to flow into the raw commodity sector, including the precious metals.
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In both the disaggregated and legacy weekly commitment of traders reports issued by the Commodity Futures Trading Commission, the managed-money and larger trader speculative non-commercial accounts increased their net-long positions in the yellow metal.
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In both the disaggregated and legacy weekly commitment of traders reports issued by the Commodity Futures Trading Commission, the managed-money and larger trader speculative non-commercial accounts greatly increased their net-long positions in the yellow metal.
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In both the disaggregated and legacy weekly commitment of traders reports issued by the Commodity Futures Trading Commission, the managed-money and larger trader speculative non-commercial accounts sizably increased their net-long positions in the yellow metal.
In both the disaggregated and legacy weekly commitment of traders reports issued by the Commodity Futures Trading Commission, the managed-money and larger trader speculative non-commercial accounts sharply cut their net-long positions in precious metals and were short in copper.
FORBES: FOCUS: Falling Prices Push Speculators To Cut Bullish Metals Positions -CFTC
In both the disaggregated and legacy weekly commitment of traders reports issued by the Commodity Futures Trading Commission, the managed-money and larger trader speculative non-commercial accounts increased their net-long positions in the yellow metal, following several weeks of a decrease.
In both the disaggregated and legacy weekly commitment of traders reports issued by the Commodity Futures Trading Commission, the managed-money and speculative non-commercial accounts decreased their net-long positions across the board, for the second week in a row in some cases.
FORBES: FOCUS: Speculators Continue To Trim Bullish Exposure To Metals-CFTC
In both the disaggregated and legacy weekly commitment of traders reports issued by the Commodity Futures Trading Commission, the managed-money and larger trader speculative non-commercial accounts decreased their net-long positions in these three precious metals for the second week in a row.
FORBES: FOCUS: Speculators Continue To Trim Gold, Silver, Platinum Bullish Exposure -CFTC
The rarer the commodity, the more it will behave like real money and maintain its value during a currency debasement.
Critics argued that most of that money would simply find its way into commodity markets, inflate prices and add inflationary pressures.
And since the entire purpose of professional investors is to shuffle money to where it will earn them the highest return, some of the money from an expanded money supply often finds its way into commodity markets.
Last year, Indonesia garnered huge enthusiasm as investors poured money in to capture its consumer- and commodity-led boom.
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