Uh-Oh, Commodity Flows Are Slowing


Fund flows into commodities are slowing down drastically.

Though of course, if you truly believe prices are supported by fundamentals, then this shouldn’t be of any concern.

WSJ: Investors plowed a record $50 billion into commodities this year, helping drive prices for crude oil up 79% and gold 23%, but just $2.2 billion of new money flowed into commodities in October.

That would mark the lowest monthly inflow since July — when threats of market regulation briefly unnerved investors — and the second-lowest since November 2008.

On a quarterly basis, inflows into commodity investments have fallen from about $22 billion in the first quarter to $17 billion in the second and $11 billion in the third. The inflows already are more than triple those of 2008. On Thursday, gold closed at a record $1088.70 an ounce.

Continue with the full Wall Street Journal Article here.

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