<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The aim of the article is to present possible consequences caused by the development of commodity market financialization understood by the influence of financial investor’s speculation. Also the task of elaboration is to outline the existence of financial factors in the price creation process of commodities. The existing impact of financialization on the volatility of commodity prices significantly modifies the market. The results of the research and analyzes carried out indicate a similarity in the behavior of the markets of commodities. The situation results from the redistribution of the risk of financial investors who having a few goods in the investment portfolio, next to large transaction volumes affect the unification of price trends. Price shaping factors are being transformed. The decrease importance of supply or consumption in the context of the commodities market changes its form. The growing influence of investors who create numerous speculations transforms the market. Trade in <italic>futures</italic> contracts affects the level of commodities prices.</p>
</abstract>

The aim of the article is to present possible consequences caused by the development of commodity market financialization understood by the influence of financial investor’s speculation. Also the task of elaboration is to outline the existence of financial factors in the price creation process of commodities. The existing impact of financialization on the volatility of commodity prices significantly modifies the market. The results of the research and analyzes carried out indicate a similarity in the behavior of the markets of commodities. The situation results from the redistribution of the risk of financial investors who having a few goods in the investment portfolio, next to large transaction volumes affect the unification of price trends. Price shaping factors are being transformed. The decrease importance of supply or consumption in the context of the commodities market changes its form. The growing influence of investors who create numerous speculations transforms the market. Trade in futures contracts affects the level of commodities prices.

Financialization of Commodity Market

Studia Humana

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

{"article-title":"Financialization of Commodity Market"}

The aim of the article is to present possible consequences caused by the development of commodity market financialization understood by the influence of...

Financialization of Commodity Market

Publicado en línea: 15 jul 2021

Páginas: 53 - 60

DOI: https://doi.org/10.2478/sh-2021-0018

Palabras clave
commodities, financialization, investment, speculations

© 2021 Marcin Złoty, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Financialization of Commodity Market

Publicado en línea: 15 jul 2021

Páginas: 53 - 60

DOI: https://doi.org/10.2478/sh-2021-0018

Palabras clavecommodities, financialization, investment, speculations

© 2021 Marcin Złoty, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Palabras clave
commodities, financialization, investment, speculations