From Zero hedge:
“The only other times that Bloomberg’s broad-based (i.e. not all OPEC’s fault) Commodity Index has fallen so far so fast was in 1999 (before stocks crashed) and 2008 (before stocks crashed). At 12-year lows, the raw material of the world’s economies is flashing a big fat red warning signal that all is not well (despite stocks being a ‘smidge’ off record highs). WTI traded with a $45 handle… but apart from that, everything’s great (oh wait and the 230 pip USDJPY roundtrip). Amid all this turmoil, gold just broke to $1235 – its highest in a month.”
We are already at the 98 mark, but the real question is whether this is being driven by overproduction or is the glut being caused by the slowing world economy. If the latter is the case then we are really going to be in for a ride.
When everything crashed in 2008 we were coming off of a booming economy. This time if it crashes we are smack dead in the middle of a shit economy and the repercussions will be far worse than before.
Stay stocked up and be prepared to do things that you wouldn’t normally do.