Right now there is price manipulation happening in virtually all markets!! Stocks, bonds, commodities, etc. There is a very big unintended consequence of the artificial suppression of commodity prices that I want you to think about. We all now are seeing how the price of gold and silver on the comex is no where near what costs to acquire the physical. That is because the premium (or the markup from the spot price). I believe this is happening in most commodity markets to try and hide TRUE inflation. The problem is we will see a greater discrepincy between the spot price and the actual price. Think about gas??? In 2007ish the price of a barrel was about the same as it is today, yet we were only paying $1.50ish then for a gallon of gas. Today, They have manipulated the price of oil to “artificial” price however the “actual” price to us is virtually double!!!!! This is very similar in many commodities…
Here is the big problem, my belief is that before we see the huge price spikes in commodities we will first see SHORTAGES!!!! This is a direct result of the manipulation!!! What we are seeing in the precious metals today with a decoupling between the spot price and “actual” price will hit other commodities as well! IMHO!!!
Price controls tend to lead to shortages!
What will this mean for us potentially? Price controls and the free market tend to be at odds? So a farmer who knows he can get twice as much in China will gladly sell to China for double. Think… Oil, food, Precious Metals, imports will all be affected!
Please people remember the gas lines of the 1970′s because of price controls/lack of supply!!! Now imagine that on most commodities! That is whats coming!!