£1000 invested in the commodities market at the begining of the year is now worth £3000. Great news for hedge funds pretty dire for you and me.
This year has been significant for its endless stream of economic scare stories. Milk, oil, metals, nothing has been safe. They have all been manipulated for the profit of the big investors.
Why? Because the banking sector did itself so much harm with the credit crunch that no-one sees there shares as a safe investment. Instead the money men have generated huge price rises on basic commodities using old fashioned rumours.
The good news is the bubble is about to burst. The much vaunted explosion in demand in Asia for everything has not materialised. Commodity prices will start to drop very soon. Sadly in the process the world economy has been hammered by this extremely cynical exercise. When you lose your job and/or home over the next year spare a thought for the Hedge Fund gurus who caused this mess.