In this complex period regarding commodities prices and financial markets, I would want to pinpoint how visionary the U.S. Department of the Treasury, when asking to the Bureau of Labor Statistics in January 1934 to begin the computation of a daily commodity price index, using quotations for sensitive commodities. Not talking about a single sector focused index, but a real composite one taking into account such (apparently) distinct prices as :
- Metals: Copper scrap, lead scrap, steel scrap, tin, and zinc.
- Textiles and Fibers: Burlap, cotton, print cloth, and wool tops.
- Livestock and Products: Hides, hogs, lard, steers, and tallow
- Fats and Oils: Butter, cottonseed oil, lard, and tallow
- Raw Industrials: Hides, tallow, copper scrap, lead scrap, steel scrap, zinc, tin, burlap, cotton, print cloth, wool tops, rosin, and rubber.
- Foodstuffs: Hogs, steers, lard, butter, soybean oil, cocoa, corn,
That's a bit of a picture and globalization is already lying behind. What this Spot indices say, is that metals and mining industry are definitely not an isolated market. They can then not going on acting as such. The financial crisis will not let the mining and metals sector intact.
The smartest actors are already preparing themselves, anticipating in their strategy what the "next World" will be.
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