Another wave of economic tsunami about to strike the world

05.10.2011

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.

On Tuesday, the spot price on gold increased by 0.9% to $1,672.38 per troy ounce. Gold has been gaining value for a fourth session in a row. Silver gained 2.5% - $31.1737 a troy ounce..... MORE

Source:  Pravda.ru

URL: http://english.pravda.ru/business/finance/05-10-2011/119235-economic_tsunami-0/