Another wave of economic tsunami about to strike the world
Raw
materials continue to lose their value on world markets. According to
Standard & Poor's GSCI Spot index, the quotations hit the minimum
level in nine months on October 3. The reduction of the prices occurs
due to expectations of the economic decline, as well as owing to the
decline of demand on primary goods. The growth of the Russian economy
has slowed down as well.
Standard & Poor's
GSCI Spot, which includes the dynamics of prices on 24 kinds of raw
materials, dropped by 5.38 points (0.9%) on October 3 - to 585.62
points, Bloomberg reported. During the third quarter of this year, the
index has dropped by 12%. This is the largest reduction since the last
three months of 2008.
Investors turn their
backs to commodity assets. The volume of commodity market dropped by
$1.08 billion over one week ending September 28. Protective assets
remain the same - gold and silver. These metals have been growing again
recently. Gold lost 11% of its value in September, but it only means
that the precious metal has been inflating its credentials. Investors
use gold and silver as a tool for market hedge.
Source: Pravda.ru
URL: http://english.pravda.ru/business/finance/05-10-2011/119235-economic_tsunami-0/
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