Further, a stronger dollar makes all commodities more expensive in other currencies, thus potentially hurting demand.
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Traders often buy gold as a hedge against dollar weakness, and vice-versa, plus a stronger greenback makes all commodities more expensive in other currencies, thereby hurting demand.
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There is a weak U.S. dollar making commodities more expensive, Gross says, and there is rising globalization that is putting Starbucks stores around the globe, and depending on coffee beans from areas of the world where a droughts can upset an agricultural economy and affect an entire annual crop output.
The quality of private-label goods has improved, making it harder for consumers to discern any difference between a store's brand and a more expensive rival, particularly for commodities such as paper towels or milk.
First, physical commodities are really expensive to inventory.
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That the dollar cost of commodities from wheat to meat to soybeans all skyrocketed alongside oil signaled that far from a problem of scarcity, commodities were becoming expensive thanks once again to a weak dollar.
Ehrlich insisted that commodities would become more expensive: they were running out in the face of the population explosion.
Historically, dollar weakness helps commodities by making them less expensive in other currencies.
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On top of all this, one U.S. trader of platinum group metals cited a stronger gone in the U.S. dollar, which tends to hurt commodities generally by making them more expensive in other currencies.
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The raising of the value of the Yuan can make it less expensive for China to import oil and other commodities but can also increase the price of oil to the U.S. consumers as the value of the dollar continues to decline.
Other commodities, such as energy, are more expensive than years past.
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At the time many onlookers pooh-poohed the notion that silver or commodities in general would perform according to this admittedly expensive script.
They usually contain derivatives, that is, they are expensive wagers based on other vehicles such as stocks, bonds, mortgage securities, commodities or currencies.
Other commodities like gold, silver, copper, nickel, all are in high demand, and therefore really expensive.
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