The Demand Curve : (Back to school)

The Demand curve represents the curve that shows the relation between price of the commodity and that of quantity demanded by the consumer. Lets try to analyse the causes of the demand curve slopping downside :

1) Due to law of diminishing marginal utility.
2) Income effects
3) Substitution effect
4) Commodity usages
5) Consumers in total.

Is Inflation & Commodity Futures linked

Its been over weeks that the world may world faces food crisis as worst US drought in more than 50yrs pushes agricultural commodity prices to record highs.  The scenario is same across the globe and we have some political statements that  India has not reached drought situation: Sharad Pawar – He is just waiting for the next big commodity import scam as reported by the leading news paper from India. Continue reading “Is Inflation & Commodity Futures linked”

Demystifying the commodities Markets

I have been in conversation with my colleagues and they wanted me to share my past experience with the commodities.

Commodities as a separate asset class has immense potential for the market savvy investors, arbitrageurs and speculators. Out of the three the market is more of speculation and arbitrage, which also ultimately leads to speculation in one way or the other.  Except Gold, hardly any commodities are used for investment.  Continue reading “Demystifying the commodities Markets”

Commodities market and the Indian govt. Saga

I did a post 3 years back and I can confirm the stalemate continues. Later on this I did a series of post but don’t know when the revolution will happen for the Indian commodities market. The The Great Indian commodities market was written with some hope recently.

Here is my initial post. Continue reading “Commodities market and the Indian govt. Saga”