Also, the volatility of price movements when the turning points are passed can quickly result in errors of spectacular proportion.
So, a better way of thinking about the volatility of gold and other commodity prices is to view it as a 40-year period of unprecedented volatility in the price or purchasing power of the dollar.
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The reverberations of the gold price correction will continue to be felt even if volatility in the price of gold subsides.
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But rosy predictions of ethanol's viability often ignore the volatility in the price of corn and natural gas, which fuels most ethanol plants.
And then there's counter-claim: the Scotland Office highlighting the volatility of the oil price as a key component of budgeting.
Some now argue that it's a cause of financial instability as the international super-rich shift their wealth around the world, increasing volatility in the price of gold, equities, government debt or basic commodities such as copper and grain.
So is the likely effect on share-price volatility of quasi real-time data: would it make some investors even more short-termist in their outlook?
To that, I would add the price volatility of natural gas.
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You should also weigh the importance of price volatility and default.
Utilities will become more dependent on natural gas, a fuel with a history of price volatility and a future clouded by environmentalist opposition to hydraulic fracturing.
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Both the short strangle and the short straddle strategies employed on Pfizer today indicate investors expect volatility in the price of the underlying shares to decline going forward.
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The attraction of cap and trade systems is that they provide a more certain environmental outcome (a set level of allowable emissions), but at the cost of price volatility.
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Xcel Energy is one company that opposes a national "cap-and-trade" mechanism on carbon dioxide emissions, partly out of concern that it will promote dependence on natural gas, which has history of price volatility.
Late Friday, the SEC said in a statement that "exceptional trading volume and price volatility of the equity market over the last few days raise the potential of even greater challenges" during NMS' phase-in.
All things equal, the most important determinant of an option's price is the implied volatility of the underlying asset over the life of the option how much it is likely to bump around.
The Russell 3000, which includes a broader range of companies, has had a similar lack of volatility in its daily price changes.
In a worrying move, Mr Chavez changed the rules of a new stabilisation fund, which is supposed to smooth out the economic impact of volatility in the oil price.
In 2010, the G-20 countries requested a consensus report from the various international agencies on how to better manage the risks of food price volatility after bread riots in two dozen countries from Brazil to Pakistan.
In this scenario the trader is happy to pocket the rich premium available on the options given the length of time to expiration and increase in implied volatility on top of the sharp rise in the price of the underlying.
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Traders positioned for 39% volatility on what has traditionally been a fairly static Sallie Mae share (as of Wednesday, its historical share price volatility was just 7.8).
Yet the price of low-volatility stocks tend to be depressed compared with their high-volatility brethren, notes Haugen.
These, he believes, have taught investors, Wall Street analysts and energy company executives to expect price volatility and greet predictions of permanently high energy prices skeptically.
John Campbell, an economist at Harvard University, contends that the world's stockmarkets tend to become more correlated at times of high share-price volatility, such as last week.
Like Taibbi, Kaufman traces the beginnings of the increased commodity price volatility to 1991, presumably when the CFTC granted Goldman the exemption from the 5000 contract speculative limit in the commodities futures markets.
Many MLPs have a degree of insulation from commodity price volatility thanks to long-term deals with customers for leasing out storage facilities and pipeline deals that are based on volume of throughput rather than the price of it.
For those investors will allocations to precious metals, this type of short term price behavior can serve as a reminder of the type of volatility that commodities can experience.
The price of sugar illustrates how volatility has played out in global food markets.
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Power companies have been reluctant to make a larger commitment to natural gas because of worries about supply and price volatility.
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Add the effect of speculation by commodities traders and price volatility is even greater.
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