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Comment: Investor demand and spot commodity prices


  • Östensson, Olle


Tilton et al. claim in their article “Investor demand and spot commodity prices” to show that “investor demand can be pushing up a commodity's price even when investor stocks are falling.” In the present comment, it is argued that in both the cases described by Tilton et al., investors are supplying the market, putting physical material into it, rather than adding to demand. Thus, the reasoning by Tilton et al. is not concerned with the phenomenon referred to in the traditional theory, where, in the absence of changes in demand and supply fundamentals, prices rise as a result of increased investor demand for futures contracts.

Suggested Citation

  • Östensson, Olle, 2011. "Comment: Investor demand and spot commodity prices," Resources Policy, Elsevier, vol. 36(4), pages 372-374.
  • Handle: RePEc:eee:jrpoli:v:36:y:2011:i:4:p:372-374
    DOI: 10.1016/j.resourpol.2011.08.002

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    Cited by:

    1. Tilton, John E. & Humphreys, David & Radetzki, Marian, 2012. "Investor demand and spot commodity prices: Reply," Resources Policy, Elsevier, vol. 37(3), pages 397-399.
    2. Gulley, Andrew & Tilton, John E., 2014. "The relationship between spot and futures prices: An empirical analysis," Resources Policy, Elsevier, vol. 41(C), pages 109-112.
    3. repec:eee:jrpoli:v:53:y:2017:i:c:p:135-146 is not listed on IDEAS


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