China stockpiling will burst commodity bubble

April 21, 2011 at 9:26 pm Leave a comment

Reports tell of stockpiling by China of commodities either as buffer stock or collateral nfor financing.

Thus,the real demand for commodities excluding this massive stockpiling is lower. With mining and agricultural production being increased, we are likely to see a surprise plunge in price once speculators pay heed to this stockpiling.

Entry filed under: Watch your step. Tags: .

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