The base side of commodity boom

Prices of precious and base metals have risen and will likely continue to do so at high rates for the foreseeable future. Negative economic conditions of the previous decade (collapse of Soviet Union, the Asian and South American market crises, global equity markets) created a foundation for an increased demand for commodities, partially due to industry consolidation. Increased demand for commodities indicates a growth in industrial production. The weak US dollar has lowered commodity prices and thus increased demand, both for industrial use and as a hedge against the weakening US dollar. Gold prices have increased particularly, due to it being a safe haven commodity, its tendency to behave like currency, and high levels of speculation.