Has the increase in commodities trading raised the price of goods?

Question

Does anyone have any literature on this.

Answer 1

Absolutely, it drove up tech stocks, the mortage mess and now commodities.

Hello G, you are spot on!

Answer 2

It is very possible.  Speculation by people who do not have a stake in the physical product artificially increases demand.  Without a corresponding increase in supply, which almost all commodities have relatively fixed short and medium-term supply, prices increase.

I am sure there is literature on the empirically observed effects of speculation on commodity markets, but the theory is fairly straightforward.