In 2008, commodity prices tanked along with markets across all asset classes during the global financial crisis. In the world of raw materials, the cure for low prices is often low prices. When a commodity hits the bottom end of its pricing cycle, production falls as the market price moves below the cost of output. When fresh supplies drop, inventories begin to decline as demand increases in response to bargain prices, leading to a bottom.
Since commodities can be highly volatile assets, the 2008 crisis pushed many raw material prices down an elevator shaft. While