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Does commodity trading has an impact on inflation (rise in prices)? email this discussion to a friend?

myLot reputation of 88/100. vinubaby123 (202)   ranked 2,443 out of 24,570 in people4 months ago

the global prices of various essential products as well as commodities are touching new heights. Do you thing the increased commodity tradings have impacted in the rise in price of these?please feel free to share your comments. try to support your answer as well.


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tags:  commodity trading, inflation, price rise, commodity, trading
 
1. myLot reputation of 57/100. NikSaluja (785)   ranked 2,526 out of 24,570 in people   4 months ago

No i dont think so as far as the earnings of people is concerned they also increased at a certain content and in proportion to that commodities prices and not so much hike:)


myLot reputation of 88/100. vinubaby123 (202)   ranked 2,443 out of 24,570 in people  4 months ago

ok. good view point. i am not telling that commodity trading is the sole reason for price rise. i was just asking whether commodity trading has any impact on price rise. because, a lot of investors are bullish on the prices. so, obviously the prices are set to go up. i am not sure about it. thats why i asked for a respone from people.

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2. myLot reputation of 90/100. limcyjain (3037)   ranked 2,377 out of 24,570 in people   3 months ago

Yes i feel that commodity trading has its role to play in increasing the prices of the products. I remember that a product guar was banned from trade by the govt as its viewed excess specualation. Infact the total quantity traded on a daily basis was more than its annual production. Surely speculators are there to jack up prices and make quick money.


myLot reputation of 88/100. vinubaby123 (202)   ranked 2,443 out of 24,570 in people  3 months ago

oh yeah, thats why government is banning a few commodities from being traded in commodity markets. may be some essential products in order to stop inflation.

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