US Federal Reserve Board and Central Banking Policies : Some significant conditions for rising commodity prices are the loose central banks' monetary policies and governments' budget & fiscal policies . Excessive monetary stimulus and rapid credit expansion will always eventually lead hard assets such as real estate, commodities, and precious metals prices to rise as more and more money chases a limited amount of commodities.If central banks can create money out of thin air, it can take many years to increase copper, zinc or silver production . Commodity production elasticity is low.
     Rising Government Budget Deficits : Rising government budget deficits worldwide, at both federal and state levels, will add significant pressure to depreciating paper currencies, in turn providing another factor for rising commodity prices.
     Energy Situation : A very positive factor for commodities is the
energy situation. The current longer-term relatively high energy prices,
such as oil, are creating a situation similar to the energy crises of the 1970s.
All of these factors point towards much higher oil and gas prices,
translating to much higher commodity prices in general. It is to be noted that
many of the other commodities, such as soft agricultural commodities,
are either derived from or produced with oil and gas products.