What is the CRB Index
In tracking the increase in commodities one of the best indexes is the CRB index. So what is the CRB index, it is also called the Thomson Reuters/Jefferies CRB Index (TR/J CRB) which is a commodity index of unweighted geometric average of some important commodities. It averages prices across 17 commodities and across time. The index tracks energy, grains, industrials, livestock, precious metals, and agriculturals.
The latest weighting are listed below
|Grains||Wheat, Corn, Soybeans||17.6%|
|Meats||Live Cattle, Lean Hogs||11.8%|
|Softs||Coffee, Cocoa, Sugar|
|Gold, Silver, Platinum||17.6%|
Below is a chart comparing of gold prices to CRB index and really shows why gold is not overvalued.