Editing Commodity (section)

== Commodity super sycle ==
Commodity super cycles are periods of time, around a decade, where commodities as a whole trade at a price that is greater than their long term [[moving average]].<ref>{{Cite web|last=Spilker|first=Gregor|date=March 22, 202|title=Are We Witnessing the Start of A New Commodities Super Cycle?|url=https://www.institutionalinvestor.com/article/b1r0r28fl471c5/are-we-witnessing-the-start-of-a-new-commodities-supercycle|website=institutional investor}}</ref> A super cycle will usually occur when there is large industrial and commercial change in a country or world that requires more resources to support the change. As prices rise, goods and services that rely on commodities rise with them.

=== History of super cycles ===
There have been four super cycles over the last 120 years worldwide.<ref>{{Cite web|last=Büyükşahin,Mo, Zmitrowicz|first=Bahattin,Kun, Konrad|date=January 2016|title=Commodity Price Supercycles: What are they and What lies ahead?|url=https://www.bankofcanada.ca/wp-content/uploads/2016/11/boc-review-autumn16-buyuksahin.pdf |archive-url=https://web.archive.org/web/20170501191732/http://www.bankofcanada.ca/wp-content/uploads/2016/11/boc-review-autumn16-buyuksahin.pdf |archive-date=2017-05-01 |url-status=live|access-date=May 2, 2021|website=Bank Of Canada}}</ref> The first commodity super cycle started in late 1890 and was accelerated on the back of widespread U.S. industrialization and World War 1. In 1917 commodity prices peaked and then entered a downtrend to the 1930s. As war erupted in Europe in the late 1930s and eventually including the U.S., the world saw a new cycle begin. Countries were not just preparing for war but also for the [[aftermath of World War II]] as large parts of Europe and Asia faced heavy rebuilding. This cycle eventually peaked in 1951 and faded away in the early 70s.<ref name=":0">{{Cite web|last=Brown|first=Randy|date=April 13, 2021|title=Are We About To Enter A Commodity Supercycle?|url=https://www.forbes.com/sites/randybrown/2021/04/13/are-we-about-to-enter-a-commodity-supercycle/?sh=333754d82d89|access-date=April 28, 2021|website=Forbes}}</ref> In the 1970s as world economies grew, they needed more materials and energy to support expansion leading to increases in prices across the board. This boom came to an end as foreign investments fled as extractive industries became nationalized.<ref name=":0" /> The most recent of commodity super cycles began in 2000 as China joined the [[World Trade Organization]].<ref name=":0" /> China was also in the beginning of their boom as industry and expansion took off. Workers moved into cities as emerging industries took off and offered a lot of new jobs and opportunities. In 2008 when the [[Great Recession]] hit, it put a halt onto the supercycle as GDP's across the world tanked leaving many economies in recessions.

The next or the fifth super cycle could arrive as the world enters the final phases of the [[COVID-19 pandemic]] and starts to build massive clean energy infrastructure in view of the commodity price increase.<ref>{{Cite web|last=Levick|first=Ewen|date=2021-03-09|title=New commodity supercycle may benefit Mongolia|url=https://www.mongoliaweekly.org/post/new-commodity-supercycle-may-benefit-mongolia|access-date=2021-05-09|website=Mongolia Weekly|language=en}}</ref>