What goes up…

Oct 8th 2008
From The Economist print edition

The great commodity-price slump

AFTER climbing to record heights earlier in the year, most commodity prices have fallen sharply in recent months. As the financial crisis chokes off borrowing, investors are pulling out of commodities to release much-needed cash. Demand has slumped as the world's big economies dice with recession. Oil, which had peaked at over $151 per barrel in July, is now below $90, less than at the beginning of the year. Platinum has seen a particularly drastic drop. Demand for the precious metal, used in catalytic converters, has slumped as car sales have fallen. It is trading at just over $1,000 a troy ounce, less than half its peak. Gold is faring better. After dropping from a high of over $1,000 a troy ounce, investors are once again putting their faith (and money) in the yellow metal, seen as a safe haven in troubled times, with prices rising by some 4% on Wednesday October 8th alone.

Reuters