Get Ready for Another Layer of Commodities Demand
We can never get a straight answer when asked whether speculators exacerbate rising commodities (NYSE:RJI) prices. Seems obvious that more demand means higher prices.
If basic economics works, you can now thank Citigroup Inc. (NYSE:C), when you are forced to pay more for your food (NYSE:RJA) and energy (NYSE:XLE). The supermarket bank has announced it will be increasing the size of its commodity investment-product team by 33% over the next two years. Why? They want to offer an increasing base of investors the chance to bid up prices for Gold (NYSE:GLD), Silver (NYSE:SLV), Oil (NYSE:USO) and more.
If Wall Street excels at anything, it’s sales. So, you can bet there are a bunch of wise-guy salesmen already salivating to push a new crop of investors into the commodities space. Sounds like Wall Street hasn’t learned a thing.