Investors Flock to Commodities, Gold

There seems to be very little concern by investors that gold will have a major correction any time soon, as the ongoing weakening of the U.S. dollar has them rushing to the yellow metal for safety and inflation concerns.

Just about every weak now gold breaks a new high, and commodities are becoming hot again, even before the economic recovery really even starts, which shows what will happen with commodity prices once that reality hits.

Spot gold rose to $1,226.10 an ounce recently, and investors like Peter Schiff believe it'll continue riding all the way up to $5,000 an ounce in the years ahead. Commodity superstar Jim Rogers also remains bullish on gold, although he thinks there's a possibility of a correction, and so while he's not buying, he's definitely not sellign either. He's hoping a correction will come and he can buy it at even a cheaper price.

Aluminum

Aluminum has been on its own run in 2009, increasing by an enormous 60 pecent just since March, to reach $2,166 a ton. Much of the reason behind the increase in aluminum price is concern over whether supply can meet the surging demand, as companies and countries will eventually start making major orders again, and stocks as of this writing are at 4.6 million tons.

Copper

Copper is primarily being driven by investors, as stocks stand at 445,400 tons, with demand down, but awaits a real recovery which could cause demand to explode.

Sugar

Supplies of sugar in the top sugar consuming area of the world, including India and Pakistan, have been struggling, and so white sugar futures have surged to a record $635.00 a ton.

Crude Oil

Even though oil increased by 44 cents to $77.04 a barrel, that won't hold, as concerns over too much supply in that case will drive prices down again. Crude stocks increased to more than the projected 2.1 million barrels.

Commodities in general, at this time, are responding to the collapsing U.S. dollar, and the surety of extraordinary inflation in the years ahead from the outrageous bailouts by governments around the world.

As far as this affects the prices of commodities, once the prices are driven by demand again, and investors pour even more into them, it's sure to make the commodity bull market of the last decade look like a calf.