Monday, June 15, 2009

Sovereign Fund And Commodity Investments

It seems that sovereign funds are also joining the commodity play. I think that with so much money in their pocket, governments can buy up large quantity of basic materials for their future demands. Those without money to buy will view this action as hoarding. The result of hoarding is that it can cause prices to spike up. Sovereign funds that have announce their commodity investment strategy are:
The billion dollar question is how much money are they allocating for commodities?

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