Simon Shares

• The good news is the US had a green week last week, for the first time in 8 weeks
• Goldfields (JSE code: GFI) is down on news it paying a chunky 33.8% premium to acquire Canadian Yamana Gold in an all-share deal
• We finally got the petrol price increase and the 150c fuel levy reduction remains in force, for now.
• German inflation hits 7.9% for May. Highest since the 1950s. EU inflation for May 8.1%, the highest ever.
• EU agrees on a partial ban on Russian oil imports
• Monthly dividends in a JSE equity portfolio
• Offshore ETFs paying monthly dividends

Demand destruction in commodities

There comes a point at which a commodities price is simply too high and the price itself reduces demand. Depending on the commodity high prices often need to be high for protracted periods of time.