Commodity prices are well off their 2011 highs. In recent months, they have crumbled quickly. No wonder why Peru’s economy has slowed down from annual growth north of 7% in late 2013 to just 1% today. The country’s stock market has cooled off as well, losing nearly half its value over the past three years.
“A lot of these countries thought they were in this golden sweet spot that would last forever. Clearly it didn’t. Now that tide is going out,” said Win Thin, global head of emerging markets currency strategy at Brown Brothers Harriman.
The latest downturn in the commodities market is hitting metals of all stripes. Prices for gold, silver, copper, iron ore, aluminum, platinum, palladium, tin and nickel have all declined this year. Gold recently fell below $1,100 — its lowest level in five years.