From the course: Economic Tips for Everyone
Join today to access over 22,600 courses taught by industry experts or purchase this course individually.
Commodities are bought and not sold
From the course: Economic Tips for Everyone
Commodities are bought and not sold
- Commodities are physical goods like oil, wheat and copper. They're important ingredients for economic growth, and they're also things that people invest in. The most important secret that I can tell you about commodities, is that they are bought and not sold. This means that market demand is more important for prices than supply, because demand can rise a lot faster than supply. After all, it takes time to plan and open a new copper mine, plant and harvest a new crop of wheat, or drill new ultra deep oil wells in the North Sea. Because the new supply takes a lot longer to come online, demand can pull up prices really quickly. And as for the price dropping, new supplies can push price down, but it can take a lot more time to add that new supply and the demand can drop a lot faster during a global slowdown or manufacturing recession, again, demand. In the longterm, more supplies and commodities can come online, but in…
Practice while you learn with exercise files
Download the files the instructor uses to teach the course. Follow along and learn by watching, listening and practicing.
Download courses and learn on the go
Watch courses on your mobile device without an internet connection. Download courses using your iOS or Android LinkedIn Learning app.