The evolution of the prime matters
21-10-2010 golden marketThe prime matters are turning into one of the most profitable alternatives on the financial markets, this tendency has been accused moreover in the last weeks as a result of the weakness of the dollar opposite to the principal coins.
But …: what is what is generating the movements in favor of these assets?
The causes of the important revaluation of these assets we might differentiate them in 2:
1. On the one hand the fundamental proper ones of each of the assets, which are very different as we speak about basic metals, precious metals, energy, soft commodities or grains.
2. For other, the external elements, these have been those who clearly have eclipsed the markets of prime matters during the worst moments of the current economic crisis - financial:
* Expectations on the evolution of the global economy. As these are positive, also there it will be the regarding ones the increase of the demand.
* Evolution of the dollar. The prime matters and green dollar support an inverse interrelation based on that most of them are named in dollars.
* Expectations on the inflation. On having been real assets, they are used like coverage opposite to inflationary stages. The loss of purchasing power of the coins has provoked a search of this type of cash commodities.
* Increase or decrease of the distaste to the risk. In general the prime matters are considered to be assets of high risk and that therefore as the distaste to the risk increases the quotation are seen penalized. Nevertheless, the precious metals would act the other way round, making to cost his assets characteristic I shelter.
* Evolution of the rest of markets. The absence of alternatives of investment is one of the factors that it is helping to that the capitals are canalized towards these commodities markets.
…
In these moments we meet a clear capital flow towards the markets of prime matters that is based on two elements previously mentioned and that is producing an upturn of the prices that is seen every time with major worry on the part of the Central banks.
This might press towards types increases before what the monetary authorities would like, ballasting this way the recovery rhythm.
21-10-2010
