Question:

In commodities trading; would the threat of physical delivery settlement help curb inflation?

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If a speculator possibly had to take delivery of corn, soybeans, or crude oil would that slow down the rampant speculators and thus curb inflation on our prices of food and gas?

As it is now, most commodities settle to an index, I believe mostly due to the oversight the delivery process would take.

Your thoughts?

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2 ANSWERS


  1. Yes . I could see some trader in NYC having a truck pull up to there townhouse with 40 thousand lbs of corn .


  2. Yes. Commodities will eventually have to be traded in a responsible way, either sooner or later.

    Speculation has actually created a shortage of goods, as more money is flowing into those goods and thereby artificially raising demands for those goods.  

    The precious metals markets, oil and food are due to catch up with inflation, at the cost of the poor.

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