Editing Commodity market (section)

===Complexity and interconnectedness of global market===
The robust growth of [[Emerging markets|emerging market economies]] (EMEs, such as Brazil, Russia, India, and China), beginning in the 1990s, "propelled commodity markets into a supercycle". The size and diversity of commodity markets expanded internationally,<ref name=BankofCanada25sept2012>
{{cite web
|url=http://www.bankofcanada.ca/2012/09/speeches/financing-commodities-markets/
|title=Financing Commodities Markets presented to the CFA Society of Calgary
|first=Timothy
|last=Lane (Deputy Governor of the Bank of Canada)
|location=Calgary, Alberta
|date=25 September 2012
}}</ref> and [[pension fund]]s and [[sovereign wealth fund]]s started allocating more capital to commodities, in order to [[Diversification (finance)|diversify]] into an asset class with less exposure to currency depreciation.<ref>{{cite news |first1=M. Nicolas |last1=Firzli |first2=Vincent |last2=Bazi |title=Infrastructure Investments in an Age of Austerity: The Pension and Sovereign Funds Perspective |url=http://www.turkishweekly.net/op-ed/2852/infrastructure-investments-in-an-age-of-austerity-the-pension-and-sovereign-funds-perspective.html |work=Revue Analyse Financière, volume 41 |date=2011 |url-status=dead |archive-url=https://web.archive.org/web/20110917182931/http://www.turkishweekly.net/op-ed/2852/infrastructure-investments-in-an-age-of-austerity-the-pension-and-sovereign-funds-perspective.html |archive-date=17 September 2011}}</ref>

In 2012, as emerging-market economies slowed down, commodity prices peaked and started to decline. From 2005 through 2013, energy and metals' [[Real prices and ideal prices|real prices]] remained well above their long-term averages. In 2012, real [[food prices]] were their highest since 1982.<ref name=BankofCanada25sept2012 />

The price of gold bullion fell dramatically on 12 April 2013 and analysts frantically sought explanations. Rumors spread that the [[European Central Bank]] (ECB) would force [[Cyprus]] to sell its gold reserves in response to its [[2012–2013 Cypriot financial crisis|financial crisis]]. Major banks such as [[Goldman Sachs]] began immediately to short gold bullion. Investors scrambled to liquidate their [[exchange-traded fund]]s (ETFs)<ref group=notes>Exchange Traded Funds revolutionized the mutual funds industry when they were introduced. Exchange Traded Commodities, sold first by pioneering investors group Barclays Global Investors (BGI) (now owned by BlackRock)  revolutionized the commodity market. By the end of December 2009 Barclays Global Investors (BGI) assets hit an all-time high of $1&nbsp;trillion ($1,032 billion).</ref> and [[Margin (finance)|margin call selling]] accelerated. George Gero, precious metals commodities expert at the [[Royal Bank of Canada]] (RBC) Wealth Management section reported that he had not seen selling of gold bullion as panicked as this in his forty years in commodity markets.<ref name=Forbes15apr2013>
{{cite news
|url=https://www.forbes.com/sites/afontevecchia/2013/04/15/violent-and-panicky-gold-selling-collapse-bullion-and-commodity-markets
|first=Agustino
|last=Fontevecchia
|magazine=Forbes
|date=15 April 2013
|title=Violent And Panicky Gold Selling Collapse Bullion And Commodity Markets
}}</ref>

The earliest commodity exchange-traded fund (ETFs), such as [[SPDR Gold Shares]] {{NYSE Arca|GLD}} and [[iShares]] Silver Trust {{NYSE Arca|SLV}}, actually owned the physical commodities. Similar to these are {{NYSE Arca|PALL}} ([[palladium]]) and {{NYSE Arca|PPLT}} ([[platinum]]). However, most Exchange Traded Commodities (ETCs) implement a [[futures trading]] strategy. At the time Russian Prime Minister [[Dmitry Medvedev]] warned that Russia could sink into recession. He argued that "We live in a dynamic, fast-developing world. It is so global and so complex that we sometimes cannot keep up with the changes". Analysts have claimed that Russia's economy is overly dependent on commodities.<ref name=FinancialTimes17apr2013>
{{cite news
|title=Russia and less than $100 oil
|date=17 April 2013
|first=Isabel
|last=Gorst
|url=http://blogs.ft.com/beyond-brics/2013/04/17/russia-and-less-than-100-oil/#ixzz2QjfhfUBk
|work=Financial Times Blog
|access-date=17 April 2013
}}</ref>