High Grade copper prices closed at $3.72 in July, 2008. Compared to the $.65 close in 2001, the last recession, the difference represents a 572% increase in the commodity price. Oil increased by 700%, corn 280%, and wheat 256%. Real income has increased by more than 6%. The prices of commodities have increased by a larger percentage relative to consumers income and this represents a commodity bubble, according to economist Edmond Siefried. Excluding the demand pull from China, Professor Siefried asserts that the run-up on commodity prices isn't justified by income figures. Thus, commodities are on a bubble that might burst. My opinion is that the demand for scarce resources will continue and it's likely to see a rise in commodity prices as copper, oil, and corn have intrinsic value. Tulips, on the other hand, only have extrinsic value which change with tastes and preferences.
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