For only then does it become clear that these prices were exceptionally high through the first decade of this 25-year period, and that a good part of the subsequent downward movement represented a return to more “normal” levels. Indeed, between the late 1960s and the late 1980s, the level of inflation-adjusted commodity prices showed little change overall.
We should also keep in mind that part of the decline in commodity prices has reflected new discoveries of raw materials, more efficient ways of extraction, and reduced production costs. Otherwise, we would have seen a much larger reduction in the importance of commodities, and in the profits and share prices of Canadian resource industries.