Have commodity markets de-financialized?

Financialization of commodity markets refers to the observation that commodities have become an asset class for portfolio investors, just like equities and bonds. While the debate on financialization is ongoing, a significant body of analysis suggests that commodity price dynamics have changed substantially since the early 2000s, and that these changes have been associated with a sizeable increase in financial investors’positions on commodity markets, as well as with changes in the composition of these positions (TDRs 2009 and 2011; UNCTAD, 2011).

Related Subject(s): International Trade and Finance