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Person notes that while corn prices went from about $3 a bushel in mid-summer to more than $4 a bushel, wheat prices doubled from about $5 a bushel at the end of 2006 to $10 a bushel currently. The rise in crude oil was another standout story in 2007, but what received less press was the lack of an in-kind gasoline-price hike, specifically on reformulated fuel. In addition to the traditional supporting features for precious metals, such as safe-haven buying and, in the case of platinum, supply deficits, the growing appetite for commodities as an investment class lifted prices. Dan Raab, managing director of AIG Financial Products, says that a big factor in commodities’ gains in 2007 was the number of new vehicles available to trade them. read more

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