Global commodity prices can impact various industries and investment options. Commodities include agricultural products, fuels, and metals that are traded on exchanges. Fluctuations in gold prices can affect jewelers and retailers that sell jewelry. Gold is also used in other industries like medical products and aerospace. When economic outlook is dim, demand for gold as a "safe haven" investment tends to increase. Lower commodity prices generally benefit consumers and users of commodities as production inputs in countries like the United States. However, commodity-exporting countries like Brazil that rely on exports of items like iron, soybeans, crude oil, and sugar are more negatively impacted by lower global commodity prices.

1. Global Commodity Prices
By Joe

2. What is it
A reasonably interchangeable good or material, bought and sold freely as an article of commerce.
Commodities include agricultural products, fuels, and metals and are traded in bulk on a commodity
exchange or spot market.

3. How it affects investment options
The price of gold can have an impact on jewelers as well as on retailers that sell or receive a portion of
their sales from jewelry related items. For example, Macy's and many of the other well-known mall-based
department stores generate a significant amount of revenue from their jewelry departments.
Gold can also be used in medical products, glass making, aerospace and a variety of other businesses.
By extension, this means that fluctuations in gold prices can make the markets move.
In addition, because gold is found and valued all over the world, it is considered a universal currency. So,
if the outlook for the U.S. equity markets and/or the economy is dim, it's likely that the demand for gold will
increase as investors "Flock to Safety"
If it appears as though the economy is about to perk up, or that corporate earnings are going to be on the
rise, investors tend to abandon gold in favor of equities.

4. Who Benefits from it?
The United States
From 2010 to 2013, the U.S. was a net importer of primary commodities. Despite exporting $101 billion
worth of refined petroleum in 2013, the U.S. imported $76.3 billion worth of refined petroleum and $259
billion worth of crude petroleum, making it a net beneficiary of falling oil prices.
While some U.S. commodity producers will feel the pinch of lower prices, consumers and producers that
use commodities as inputs will benefit. While oil has been a major input, its importance is waning as net oil
imports comprise only about 20% of total consumption this year, which would be the lowest proportion
since 1968.

5. Who Loses from it?
Brazil
Brazil's top exports, as of 2013, were iron, soybeans, crude petroleum, and raw sugar. During the
commodities boom, Brazil became a major destination for capital investment. But that boom has busted,
and money is drying up, putting downward pressure on the country’s currency, which is serving to fuel
inflation. Despite growing at a pace of 7.6% in 2010, Brazil grew at a pace of just 0.1% last year.