FastSwings.com

   Stocks, Stock Swings, Options, and Option Trades

   Disclaimer: Consult a Financial Advisor prior to taking the advice offered. By reading this blog site you agree to not hold any authors or FastSwings.com responsible for market loses that you may incur.

 Subscribe in a reader

Subscribe to FastSwings by Email

All Posts Term: commodity
3 post(s) found

The Day the Bottom Fell Out: A Commodity Crash Hits Home

It was a chilly Monday morning, April 7, 2025, and for most folks, the day started like any other—coffee brewing, kids scrambling for school, the usual chaos. But in homes tied to the heartbeat of global trade, something felt off. By the time the sun peeked over the horizon, the news hit like a freight train: commodity prices—oil, metals, gold—were crashing hard. This wasn’t just numbers on a screen; it was livelihoods unraveling, dreams slipping away, and a world suddenly holding its breath.

Stock market crash scene

Oil Towns Feel the Chill

In Midland, Texas, Jake Torres, a third-generation roughneck, stared at his phone in disbelief. Brent crude had tanked to $70 a barrel, and WTI wasn’t far behind at $65. “I’ve seen dips before,” he muttered to his wife, Maria, over breakfast, “but this? This feels different.” It was. President Trump’s new tariffs—10% on everything coming into the U.S., 34% on China, 25% on cars—had spooked the world. Less trade meant less oil needed, and Jake’s rig was one of dozens now facing shutdowns. Maria, a nurse, squeezed his hand. Gas might be cheap at $2.80 a gallon, but that didn’t pay their mortgage.

Across the Atlantic, in Aberdeen, Scotland, oil worker Fiona MacLeod got the call she’d dreaded: “No shifts this week.” Her husband, a fisherman, hadn’t seen a decent haul in months either. The tariffs were choking demand, and with China slashing factory output, the oil market was drowning. Fiona scrolled X, where folks raged about OPEC+ dragging its feet. “They’ll meet eventually,” she sighed, “but will it even matter?” Reuters reported that oil prices were at their lowest since 2021, a grim echo of her fears.

Metal Towns Brace for Silence

In Kitwe, Zambia, copper miner Chanda Mwape sat on his porch, watching kids kick a ball in the dust. The price of copper had nosedived to $3.50 a pound—down 8% overnight. “We were just getting back on our feet,” he told his neighbor, a fellow miner. The U.S. tariffs had slammed China’s factories, and with Jaguar Land Rover halting U.S. exports over the 25% vehicle hit, metal demand was vanishing. Chanda’s mine cut shifts, and rumors swirled of layoffs. His wife, a teacher, started calculating how long their savings could stretch.

In Pittsburgh, steelworker Tony Russo felt the same gut punch. Steel prices were down 12%, and his plant was eerily quiet. “Tariffs were supposed to save us,” he grumbled to his buddy over a beer. “Now we’re drowning in our own inventory.” The bar TV blared about Wall Street’s 2,000-point drop, but Tony’s world was the mill, and it was teetering.

Gold Loses Its Glow

Even the safe bets crumbled. In Reno, Nevada, retiree Linda Hayes checked her gold stash—her “rainy day fund.” It had dropped 3% to $2,450 an ounce. “I thought this stuff was supposed to hold up,” she said to her son on the phone. He explained the chaos: investors selling gold to cover stock losses after the tariff news. Silver was down too, 4% to $28. Linda’s nest egg shrank before her eyes, and with the dollar spiking, she wondered if cash under the mattress was the smarter play.

Everyday Lives Upended

The crash rippled everywhere. In Des Moines, Iowa, farmer Sarah Klein watched grain prices wobble as export demand faltered. Cheaper fuel helped, but not enough. “We’re barely breaking even,” she told her co-op friends, who nodded grimly. In Long Beach, California, dockworker Miguel Ortiz clocked out early—fewer ships, fewer hours. “Maersk’s got boats just sitting there,” he said, kicking a pebble. His daughter’s college fund felt further away than ever.

Back in New York, Wall Street was a madhouse. Priya Patel, a junior trader, watched the VIX hit 40, her heart racing. “It’s like 2020 all over again,” she texted her roommate. Her boss barked about Goldman Sachs slashing GDP forecasts to 0.5%, recession odds climbing. Priya’s bonus? Probably toast. She glanced at her phone—Bloomberg noted China might pump cash into its economy, a flicker of hope. But the pit in her stomach stayed.

Oil Prices Could Move Higher to $45 or $60 a Barrel

oilprices

With the demand for oil continuing to increase every year from 1 to 2 percent, the price is destined to rebound higher within the next couple of years. Supply has fallen due to a lack of new production with the current price suppressed. We have seen trading around $30 with prices moving around a little bit, a general trend upward over the past 3 months. This price increase has been noticed at retail gasoline stations across the country.

Some view a yearly target of $45/barrel as being reasonable with a two to three year target of $60.

There are a couple of caveats to the price discussion. Derivatives are largely responsible for the price of the commodity. So supply and demand are often obscured from the current prices by these trading instruments. And their price is more volatile than a straight commodity traded on an exchange would be. A world event could cause the price to fall or jump quickly.

Gold: Currency or Commodity?

English: gold bar 400 ounces, sample at the Pr...

Image via Wikipedia

The best way to buy gold depends on what an investor is looking for, but there are several options that can be chosen. Gold has been used to store value for centuries, and it offers buyers a great way to realize a profit while minimizing risks. More traders are choosing to include gold in their portfolio, and they have worked to develop the best way to buy gold. Gold can be found as a currency, for example, as many coins are offered to traders, and gold bars are sometimes made from this material. Investors can also buy gold by the ounce, or they may choose to purchase stocks that follow the gold market.

Our FaceBook Page

Market Summary