Quote:
Originally Posted by CamaroSkooter
I don't even understand how speculators and hedge fund managers ever got the power to affect the price of a commodity.
Commodity prices should be determined solely by supply and demand.
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Yes you are right it should, but since its a open free market, they hold most contracts and trade them based on what they percieve will affect supply and demand even when most of their reasoning never come true and never happen. But they use their data to screw the prices and basically control the market. They like to cause false positives on stockpiles as well by buying at important trading hubs and storing the product and not releasing it to the market to create the image of tight supply with high demand thus sending the panic out to buy low(which forces prices up) before prices shoot up. It's a method thats really frowned upon but proving it is too hard to do so there isn't much one can do about it unless parties conspired together.