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8

tl;dr: it's basic engineering: efficiencies improved between 1970 and 2010. Additionally, net USA imports increased from 0.75 trillion cubic feet in 1970 to 3.8 trillion cubic feet in 2007 I think there may be some misunderstandings. Firstly: the first chart shows domestic gas production. "Domestic" doesn't refer to residential-only use - it just means ...

6

Usually, when people use non-equidistant axis, it is because they want to emphasize some variation more than others. For example, if most of your data is between 0 and 1, but you have one outlier on 100, then an equidistant axis would make it hard to analyze most the variation, because it emphasizes the wrong parts. In this case you have a log-scale, which ...

6

It's a holdover from the old Gold Standards. Gold standard regulation required all banks, including the central bank to hold gold as a regulatory asset. In the last gold standard, the Bretton Woods regime, the US in particular had to hold gold to back the dollar. The requirement went away with the collapse of the Bretton Woods agreement in 1973, but the gold ...

5

You have a few options for data. With questions of this nature, Quandl is your friend. See here for historical gold prices, 1833 until present. I've not read about the methodology here though. This resource has the gold/silver price ratio. Annual data. It seems pretty easy to transform this into price of silver. For platinum It also looks like the Perth ...

4

I guess it is for the same reason that other countries hold foreign reserves. The argument is that for some reason foreign markets become suddenly very adverse to take your currency, you should have some other medium of exchange that allow you to finance imports or serve short term external debt. This is very related to the Guidotti–Greenspan rule.

4

From wikipedia: A commodity currency is a name given to currencies of countries which depend heavily on the export of certain raw materials for income. These countries are typically developing countries, e.g. countries like Burundi, Tanzania, Papua New Guinea; but also include developed countries like Canada and Australia. In a more practical sense, if the ...

4

MANGOES: MARKET STEADY. flats 1 layer [[cargo type]] HT [[Haitii]] Francis [[variety]] 9s [[9 fruits in 1 layer flat]] 11.00 [[price for 9 fruits]] 10s [[10 fruits in 1 layer flat]] 12.00 [[price for 10 fruits]] MX [[Mexico]] Keitt [[Variety]] 7s [[count]] 5.00-6.00 [[price]] few 6.50 [[a few at a different price]] ...etc... 25 lb cartons [[cargo type]] DR [[...

4

The problem in your question is the "and vice versa". To give a very simplistic view, the problem in the 2008 crisis was not on production side - companies had enough to produce, but no-one to sell to. Given this, excess commodities found no buyers, even as the price lowers. The inverse correlation of stocks and commodities supposes full capital use, which ...

4

A big part of the answer to this question must surely be network effects. Yes, Ford has a lot of engineering talent. But so has GM. This means that Ford has to compete with GM to sell cars, and this competition limits that amount of profit that Ford can make. Ride sharing is a different story altogether. Suppose you write software that completely ...

4

There are two ways to look at the value of a financial instrument. One is the underlying asset base, the other is the yield. Bitcoin has no underlying asset base and no yield. Therefore, its only value is whatever people imagine it to be. In other words, it's completely overvalued. But that does not mean it is on the verge of massive corrections. There is ...

4

I'll draw from John Cochrane's article and working paper, which provide some great points. Bitcoin doesn't provide dividends or an interest rate, there isn't any payment or reward for saving in Bitcoins by itself. Therefore, it has 0 expected value of dividends and should have a price of 0. But it has a positive price in real life. There are two reasons for ...

4

The example you've picked is slightly complicated, because I think there are two possible reasons for the difference in price. Both could contribute at the same time, depending on your view of how wood production works in your example. 1. The labour value invested in growing, harvesting and processing better quality wood (prior to furniture manufacture). ...

3

So in modern English, a commodity is a raw material for production or basic agricultural good that can be exchanged for money. Labor, by this definition, is neither a raw material, no one grinds humans up to build stuff, I hope; an agricultural good, similar reasoning; nor exchangeable for money, as slavery and indentured servitude is illegal and efficient ...

3

Major trading exchanges have order books that anyone can see, if they're willing to pay for the service. So in that sense, they are available to the public. For example, anyone can subscribe via a broker to the London Stock Exchange Level 2 data, which shows them the live order books for listed instruments. Very few have "secret" order books. I think you ...

3

The benefits of market share in the somewhat-fungible oil market: pricing power (because OPEC is big enough to retain pricing power in the long term because they're a big % of the market. They're just choosing to not use that pricing power right now, perhaps because they're choosing to bankrupt competitors) geopolitical strength Note that there are ...

3

I work for Quandl and on our site I can recommend two free historical databases that you may want to check out: The United Nations Industrial Commodities Database, I believe, shows production amounts for various commodities like steel, petroleum, glass etc. in metric tons for different countries: https://www.quandl.com/data/UINC The United Nations Energy ...

3

Most global commodities are quoted (priced) in US dollars. The more valuable a dollar becomes relative to other currencies, all other things equal, the more commodity prices have to fall to equilibrate. Imagine everything was priced in corn and people start to value corn more or the amount of corn falls. Either way, all the prices in terms of corn (e.g. ears ...

3

As it has already been explained, it's a logarithmic scale (also called log scale for short). The distance between values doesn't depend on their linear difference, but on their relative difference. The distance between 20 and 40 is the same as the distance between 40 and 80 or the distance between 60 and 120, because 40/20 = 80/40 = 120/60 = 2 or a 100% ...

3

It's highly likely that the coal will be pretty much worthless in 20 years from now. That's because we've got far more fossil fuels than we can burn safely: the negative externalities far exceed the consumer's private benefit. The world is on the edge of rejecting coal forever. Several countries have already done so, and that number is growing steadily.

2

To make it simple: let say your coconuts production is constant over time but the population is growing. It's a constant supply but an increasing demand, resulting in an increase of coconuts price. If the prices were constant, the demand would be higher and thus not fully satisfied.

2

I would expect the gasoline market to be more competitive than heating. Transporting heating oil into homes requires large infrastructural investment and high fixed costs, so you'd expect there to be more market power concentrated in a fewer number of firms, driving the price of it up. Creating gasoline for sure requires a lot of investment too, but not for ...

2

Let's start with the statement - 'Consider the commodity exchange where the futures price of a commodity is determined by supply demand during trading hours and is not directly determined by the real price' first, this statement is not accurate. Not everyone that buy a commodity future ever intend to take delivery. Second, you need to look at financial ...

2

I cannot comment because of too little reputation. So please note that this response is an extension to the response of Giorgio stating that Marx abstracted labour to a commodity in Das Kapital. With regards to import and export I don't think you have to go as far as talking about slavery. On a more local scale labour is continuously imported and exported. ...

2

Gold is generally the best option for expected political and economic strife as it generally reacts inversely with the markets. Here's a good article on the connection between war and the value of gold. Another thought would be to buy stock in companies involved in the defense industry. Raytheon, Boeing, Northorp Grumman all jump during wartime due to the ...

2

Roberts and Schlenker (2013) estimate the price elasticity of demand for agricultural commodities to be about -0.08 to -0.05. These are elasticities estimated over much smaller changes in $p$ and $q$ than you are suggesting. Remember that the elasticity is effectively percent change in $q$ for a percent change in $p$, so we can ask what the percent change in ...

1

Under the broader definition of commodity (due to Marx, Das Kapital, Volume 1, Chapter 1, Section 1) as some material or immaterial thing that satisfies some human need, that can be owned, bought and sold on the market, labour power can be seen as a commodity: It can produce useful things or services It is owned by anybody who is able to work It can be sold ...

1

Often people will first find a spread between the derivative products and the base one. This spread, is likely to be a reflection of the marginal cost of refining that last unit of the derivative product. Therefore it is likely to depend on demand relative to supply of refining capacity: If there's a new refinery for this product coming online, then you'd ...

1

This may be rather late, but it seems from an article at the time that this was due to supply disruptions in Canada, Nigeria, and Venezuela. Canada was experiencing wildfires which shut down oil production, Nigeria suffered from attacks in the Niger Delta (the main source of Nigerian oil), and Venezuela was experiencing severe political crisis. With a supply ...

1

The Steam Community Market has an order book that is at least partially open:

1

The market capitalization of a stock is an interesting and frequently-quoted statistic. It's generated by multiplying the price of a share times the number of shares outstanding. It is important, however, not to be misled by the difference between what the market capitalization measures and what it claims to measure. It's true that shares are currently ...

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