Gold and other commodities ran the normal speculative course from under-loved and ignored in 2001 to over-loved and hoarded by 2011. Today millions of misplaced bets are continuing to unwind as would-be investors exit the space in losses and disgust. With supply gluts in most materials and global demand weakening, the sector has further consolidation and mean reversion to run in order to cleanse itself from the madness that was. After the last secular peak in commodities in 1980, it took 20 years for the next boom cycle to rise from the ashes once more. We could see a similarly long languish period this time. Still few of the previous cheerleaders will admit they were painfully wrong.
The rout in commodities deepened with prices touching the lowest since 2002 as the prospect of higher U.S. interest rates sent gold tumbling. Here is a direct video link.