CHAPTER 8

When Commodities Collapse, Find A Hedge

“I used to make a phone call with a very thin dime, now I can’t afford to even call to get the time”

—Prince Charles and The City Beat Band

Many times, economic and financial market concepts seem really complicated and difficult to understand for the average citizen. However, if we have a discussion with friends in a bar or a restaurant, many understand the basic principles of commodities. And when we talk, we frequently debate on the challenges of supply and demand. Everybody more or less gets the idea of a finite resource and that price inflates when demand rises and reduces when supply is plentiful. On top of it, because we like conspiracy theories, we add assumptions of what producing countries’ ...

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