An evidence of speculation in Indian commodity markets

Varadi, Vijay Kumar (2012): An evidence of speculation in Indian commodity markets.

Abstract

Recent price surge in commodity markets has stipulate intensity of various factors which lead price volatility. There are multi-factors such as traditional supply and demand factors, excess global liquidity i.e., monetary inflows in commodity markets and financialization i.e., financial investors (portfolio investment and speculation) attitude. This paper is an attempt to investigate for the evidence and its impact of speculation on volatility of commodity prices in Indian commodity markets. Overall, results show that speculation has played decisive role in the price bubble during the global crisis.

• Item Type: MPRA Paper
• Language: English
• Keywords: Commodity Markets, Speculation, Price Volatility, Financialization and Investor’s behaviour
• Subjects: G - Financial Economics > G1 - General Financial Markets > G12 - Asset Pricing ; Trading Volume ; Bond Interest Rates; G - Financial Economics > G1 - General Financial Markets > G18 - Government Policy and Regulation; G - Financial Economics > G2 - Financial Institutions and Services > G28 - Government Policy and Regulation

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