Goldman Commodity Veteran Says He’s Never Seen a Market Like It

Jeff Currie, the closely-followed head of commodities research at Goldman Sachs Group Inc., says he’s never seen commodity markets pricing in the shortages they are right now. 

“I’ve been doing this 30 years and I’ve never seen markets like this,” Currie said in a Bloomberg TV interview. “This is a molecule crisis. We’re out of everything, I don’t care if it’s oil, gas, coal, copper, aluminum, you name it we’re out of it.”

CLICK HERE to read the article over at Bloomberg.com

Thoughts: I love commodities overall simply due to a) Nobody can print metals and b) Supply side looks incredibly favorable. If the world economy can keep going on manipulated rates and growing of debt (pulling demand forward) then I can see base metals and oil outperforming lets say gold… However, like we saw in 2008 there is a breaking point where price rises chokes the global economy. After oil peaked at $150 in 2008 it went down to $33 within a year during the great recession. Copper went from $2.88/lb down to $1.25/lb in the same year (2008). Most people know that gold got hit as well for a period of time but it was “only” a fall from $1,015 down to $683 (peak to through). Furthermore I don’t see commodities overall keep going higher without gold and silver eventually being dragged along. I guess what I am saying is that even though the “consumed commodities” have perhaps an even better demand/supply picture right now, and even long term, the demand side is probably a bit dubious due to the “artificial bubble demand”. With that said most of us are invested in companies and companies can of course be cheap relative to where the commodities are trading at now (which I think they sure are). I’ll be long miners until they are overvalued regardless of where I think any commodity might be heading in the short term.