Fundamentals and Volatility: Storage, Spreads, and the Dynamics of Metals Prices
AbstractThe theory of storage implies that inventory and demand conditions affect (1) the variances and correlations of commodity spot and forward prices and (2) the spread between spot and forward prices. For four industrial metals and one precious metal over the 1986-92 period, the observed relations between the spread and the variances and correlations of spot and forward prices are consistent with the theory. Since the close connection between spreads and real supply-and-demand conditions is well documented, the results strongly suggest that fundamental factors determine the dynamics of metals prices. Copyright 1994 by University of Chicago Press.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by University of Chicago Press in its journal Journal of Business.
Volume (Year): 67 (1994)
Issue (Month): 2 (April)
Contact details of provider:
Web page: http://www.journals.uchicago.edu/JB/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division).
If references are entirely missing, you can add them using this form.