Time element plays significant role in commodities market

By IVCPOST Staff Reporter

Jul 27, 2013 02:34 PM EDT

The commodity market is putting another definition to the old adage "time is gold." Nevertheless people often ignore its significance as they are too caught up within their own limitations.

Profits and losses are dictated in the short term, medium term and long term. Producers, consumers and investors who are too focused on short-term may have trouble on sustainability. In the long term, the picture becomes more blurry and indistinct, which could further be impacted by a lot of factors.

All the significant decisions are made in the medium term where short-term dynamics already had their run. Whatever moves pursued in the medium-term cycle will have direct impacts on the long-term future of the producer, consumer or investor.

However, the lines that separate the three time cycles are not so clear. Oftentimes, they overlap which makes it difficult to become aware of the transition. The challenge, therefore, is knowing not only how to act but also when to act.

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