"On May 11th Daily Commentary, you made the comment:

"3) Commodities are not an asset class just because bank PR departments declare them so."

"Could you please elaborate on your statement and if possible, provide some references? I would like to share it with my colleagues."

David Fuller's view Just ask them to think it through.

Think what would happen if lots of investors decided to put just 1% of their assets in buy-and-hold trackers for crude oil futures?

The price would spike, causing another global recession, in which case the oil gains would be temporary and a Pyrrhic victory in terms of adverse consequences for many of their other investments.

Think what would happen if they decided to put just 1% of their assets in buy-and-hold food commodity trackers?

Millions of people around the world would go hungry or even face starvation, and we know how unfortunate and politically destabilising that would be.