With the incredible amount of interest in buying gold and investing in commodities, Investment U has turned to Money Morning commodities expert Peter Krauth to give an idea on where we are in regards to their historic cycles and how investors can take advantage of where we are right now…There’s never been a better time to begin investing in commodities.

Gold rose today, Friday, steadying above $931 per ounce as the dollar lost ground versus the euro, with deeper concerns over the U.S. economic outlook also underpinning the metal.

We started digging into Jeremy Grantham’s May Quarterly Letter over the weekend. Grantham is a typical underground investor: although he’s well known among institutional investors, most retail investors have never heard of him. He is the chairman of Grantham Mayo Van Otterloo, which has roughly $85 billion under management.

Global stocks flat… Oil falls, trades around $53 a barrel…  Europe shares down 0.3 percent, Japan up 1.7 percent… Wall Street facing poor start… Dollar rebounds, bonds rise

Selling stuff you bought with borrowed money is a process that’s mostly been confined to the financial markets in 2008. But now we see the behavior migrating into the economy. At the household level, a collective sense of thrift is beginning to set in. People are selling what they don’t need to raise cash.

There are a lot of forces impacting the gold market, yet prices are barely moving. Demand is soaring, but prices are dropping. What gives?