Historically speaking, commodities balance sheet entries were not observable in a timely fashion. Lagged data is typically published by government agencies and often substantially revised in later releases. This lack of uniformity severely hinders the efforts to gauge international commodities balances and determine individual commodity valuations. Further complicating this effort are the different accounting standards and principles adopted by different agencies and analysts.
This paper proposes that in today’s information age, it is possible and necessary to construct a globally consistent investment framework that integrates all available fundamental data and technology into dynamic stocks-to-use ratios to assess commodity valuations in near real-time.
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