A bubble in commodities? What bubble?
-- There's no bubble in commodities! Whatever the media and mainstream economists are trying to tell you otherwise, don't even believe a single word of what they say! Why? Ask your friends and relatives around you, how many of them have invested in commodities? If there are less than 3 to 5% of them, and potential new traders/investors don't even know how to get themselves started, how can this be a bubble? A bubble is a man-made fiasco, and there's always one very important component in the making of a bubble: the governments. Do you see your government giving you tax incentives and coming out with policies that facilitate the development of hyperinflated prices in commodities? NO! Another attribute of a bubble is that the asset class must also be plentiful. Commodities are scarce!
-- Rice prices have been on the decline for 50 years when adjusted for inflation -- yes, 50! There's no new sizable productive capacity in Crude Oil that has come online. Even if a new gigantic oil field is discovered today, no-one will be able to bring the new oil to market until years later. The list continues...
-- The media and mainstream economists have been telling you a US Dollar story: that the rise in the prices of commodities are inversely related to the greenback. I am anticipating the upcoming phase to be NOT related to the US Dollar. In my view, food prices will continue to go higher even *if* the US Dollar can make a rally! Food prices are largely driven by supply and demand, and they will rise against all currencies!
-- Most of the "solutions" proposed by governments and politicians to solve the present food crisis will not work. In fact, they will make the problem worse. The only solution is to let these prices go up -- that's what prices are for!