Commodities - What's really driving prices up?

New Investment vehicles, ETFs, Hedge Funds etc are driving prices beyond normal supply demand economics. The money being diverted in to commodities have increased more in aggregrate over the last five years than at any other time in U.S. History.

Some ETFs use Futures contracts others will take physical posession, both drive prices higher.
Manufactors have to compete with ETFs that are taking millions of tons of valuable metals and minerals off the world markets.

India's demand for fertilizer has grown by 10% a year, but prices have risen 150 to 300% in the last year alone.
"Chinese demand for Oil has increased by 920 Million barrels over the last 5 years, demand from Speculators has risen by 848 Million barrels over the same period. " according to Mr Michael Masters portfolio manager for Masters Capital Management LLC.
"Institutional investors have moved into commodities as a way to protect themselves against volatility in interest rates and the stock market."

Royal Dutch Shell, OPEC and others have been telling us that there is no shortage and don't intend to increase production.
Use of Futures contracts are driving Oil higher and higher, up 19% this month alone.

Happened to the Tech bubble. Tech Managers were being hailed as Investment Gurus.
By mid 2000 Nortel was in almost every Mutual Fund ( even Dividend Funds) chasing higher returns.
Nortel topped out at $ 120 and by August 2000 Fund Managers were taking profits, that left the small retail investor jumping in to buy Nortel at "bargin prices" of $ 90 to $ 100.
As we now know Nortel has lost 99% of its value over the last 8 Years.

This high stakes poker game being playing on the World Stage with billions and billions of $$$ has to be a concern. All we can do is watch from the side lines ( hurts our wallets in the mean time) and wait for the final chips to fall. Are we there yet? When Dividend Funds are adding Resource Stocks to their portfolios I know we are getting close.