Commodities : Are the markets a good thing?

[PhilTheFragger]

Why do we have commodities markets ?

They seem to exist to make a lot of money for a few individuals, but are responsible for economic upheaval when prices rise and fall.

Take oil, which we all rely on, the price has crashed recently causing large job losses in the oil industry, but just prior to that , crude was at an all time high

This volatility isn't good for business, jobs or governments so in these days of a global economy, why don't we have commodities prices set by a world governing body. This would provide stability and allow industry and everyone else to plan.

Gold, copper , silver, coffee , tea, sugar, rubber, gas, electricity, coal, iron , steel. Etc etc

Why not?

 

[woody69]

Surely having a single entity set the price of something makes it even more open to abuse? World governing body thinks we need a little more cash... oh lets up the price of oil a little. As you know that commodities are traded on exchanges, their prices are not set by a single individual or entity, which makes it harder for prices to be fixed.

You also have the fact the same commodities aren't produced at a single price. Depending on where they are coming from the cost of production is higher or lower. Drilling oil out of the North sea is considerably more expensive than from out of the middle east, so how do you set the price and who makes the majority of the loss?

 

[patricks148]

i was a commodities broker a few years back.... no comment!

 

[bluewolf]

Hang on a minute.. What we appear to have here is a confirmed Tory supporter questioning the role of Capitalism and asking whether Socialism would be a better system? Looks like Jezza is infiltrating the Southern Tory heartlands....
:rofl:

 

[SocketRocket]

Great idea and they could create a new currency called the Globo. No wait a minute!