In its February 2012 report on commodity investments, Barclays admitted that an increase in commodity speculation leads to increased prices. The report lists three main causes of the current run-up in commodity prices, stating,
“The second key driver is that commodity investors have begun allocating to commodities again after beginning 2012 heavily underexposed to the sector.”
The report goes on to explain that “net long hedge fund positions across all U.S. commodity futures markets have [Read More...]