Slowly but surely, commodities have been coming back to life.
It appears to have begun in soybeans early this year, followed by corn, wheat, and crude oil. Now gold and silver have been starting to follow as well. We’ve covered the trend heavily on our InsideOptions Pro service, which started getting inundated with upside trades in the energy space about two months ago.
In and of itself, a rally in a single commodity means nothing. It could result from a bad harvest here or a mine accident there. But the coordinated move that has taken shape in the last few weeks suggests that something bigger is underway that could make all of us a lot of money in coming months and years.
It’s important to put the recent strength into context to see how unusual it truly is. In early 2009, for instance, energy rallied but foodstuffs were weak. Then last year the opposite was true. Now we have both climbing at the same time–something that hasn’t happened since before the subprime-mortgage crisis.
— Option Monster