Financial Investors and Commodity Markets

15 Pages Posted: 21 Jun 2012

See all articles by Dietrich Domanski

Dietrich Domanski

Bank for International Settlements (BIS)

Alexandra Heath

Reserve Bank of Australia - Economic Research

Date Written: March 2007

Abstract

Commodities have attracted considerable interest as a financial investment in recent years. This article discusses the factors behind their growing appeal and assesses the extent to which market characteristics, such as price volatility, have changed as a result. The feature concludes that commodity markets have become more like financial markets in terms of the motivations and strategies of participants, but that the physical characteristics of commodity markets are still important.

JEL Classification: G11, G15, Q41

Suggested Citation

Domanski, Dietrich and Heath, Alexandra, Financial Investors and Commodity Markets (March 2007). BIS Quarterly Review, March 2007. Available at SSRN: https://ssrn.com/abstract=1600058

Dietrich Domanski (Contact Author)

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland

Alexandra Heath

Reserve Bank of Australia - Economic Research ( email )

GPO Box 3947
Sydney, NSW 2001
Australia

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