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Commodity traders harvest billions while prices rise for everyone else

MONEYWEB app instead? The Bloomberg Commodities Spot Index is nearing 2008/11 peak. By Javier Blas, Bloomberg 3 Jul 2021  00:50  Image: Qilai Shen/Bloomberg Doug King set up his hedge fund in the early days of the commodity super-cycle in 2004. It was perfectly timed: voracious Chinese demand lifted the price of everything from oil to copper to record highs. Investors flooded the commodities sector. At the peak, King’s Merchant Commodity Fund was managing about $2 billion. But the boom ended abruptly after the 2008 global financial crisis and the onset of the US shale revolution. Prices plunged, big institutional money got out and many specialist hedge funds closed.

Commodity traders make billions as oil, copper, battery metals prices rise

Commodity traders make billions as oil, copper, battery metals prices rise Cargo ships entering one busiest ports in Singapore. Stock image. Doug King set up his hedge fund in the early days of the commodity super-cycle in 2004. It was perfectly timed: voracious Chinese demand lifted the price of everything from oil to copper to record highs. Investors flooded the commodities sector. At the peak, King’s Merchant Commodity Fund was managing about $2 billion. But the boom ended abruptly after the 2008 global financial crisis and the onset of the U.S. shale revolution. Prices plunged, big institutional money got out and many specialist hedge funds closed.

Commodity traders harvest billions while prices rise for everyone else

Commodity traders harvest billions while prices rise for everyone else
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