What next after the 'super-cycle'?
The price of gold, for instance, soared to record highs above US$1,900 an ounce in August 2011, and as recently as October 2012 was trading at about US$1,800. But since then it has dropped to about US$1,400.
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Last week, commodity prices fell across the board. Gold, oil, copper and aluminium were all sharply lower after China's economic growth in the first quarter failed to live up to market expectations.
China has helped fuel demand for commodities in recent years, sending prices up, but fears that slowing growth there will hit demand is now having the reverse effect.
China is the "wildcard" because of its sheer size, according to Jeff Grossman, President of BRG Brokerage and a seasoned trader of 33 years.
"The last move that took place downward in crude oil was definitely spurred by a disappointing number for the growth of the Chinese economy."
Supply response
Most analysts agree it is inevitable that what goes up must eventually come down.Trader Jeff Grossman says commodity prices now face a reality check
"Commodities, at the end of the day, are cyclical," says Aakash Doshi, commodities strategist atCitigroup.
"Since the early 2000s up to the great recession you saw commodities rise around 20 per cent on a compound annual growth basis. We think what those heightened prices did was lead to a supply response for commodities that are mined and drilled." That additional supply could now have a dampening effect on prices, he explains.
"We do think that the super-cycle is eating away, and that we are at the tail end of it." Ruchir Sharma, head of emerging markets at Morgan Stanley and author of Breakout Nations, agrees.
"It takes a long time for supply to come onstream but once it comes it stays for a long period of time."
After many years of observing the markets, Mr Sharma has a broad rule that he uses when it comes to commodity prices - two decades down followed by one decade up.
"The supply and demand dynamic we've had is now going into reverse."
'Air out of the balloon'
But with the end of the super-cycle, though commodity prices may continue to fall, few are predicting a market panic.
"I see prices moderating," says Mr Grossman, talking over the buzz of the trading floor. "I look at it as a reality check."
Having spent more than three decades in the "pit", studying the markets and looking at charts, he described himself as a "contrarian".
"I see a market that's up, I'm already assuming it's going to back off. A market's down, I'm looking for it to rally."
But he adds: "A little air is out of the balloon. A lot of prices were unnaturally and extremely blown out of proportion."
The world's largest maker of construction and mining equipment, Caterpillar, cut its profit forecast this week, citing a drop in demand from its mining customers.
Citigroup's Mr Doshi says the market faces certain headwinds, not only with growing supply, but also with the recent strength seen in the US dollar.
Commodities are priced in dollars so a stronger dollar weakens foreign buyers' purchasing power, leading to a drop in prices.
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There is also the expectation that the US central bank, the Federal Reserve, may stop its quantitative easing programme, which has pumped billions of dollars into the US economy, reducing the rate of inflation in the US.
Inflation drives up commodity prices. Falling inflation is therefore likely to have a corresponding effect on commodities.
Winners and losers?
So if commodity prices are now in a different place in the cycle, what consequences could that have for economies around the world?
"If you look at the performance of economies in the last decade - in terms of relative economic growth [compared with global averages] and stock market performance - the best performing markets in the world, such as Brazil and Russia, they are all exporting commodities countries which got a huge lift," says Mr Sharma.
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He points to Turkey, which does not export any commodities, as a potential "winner" from the downturn in prices, as well as India because 40 per cent of its imports are gold and oil.
In general, western economies who are big importers of raw materials will receive a boost, but it will also mean trouble for the likes of Brazil and Russia. BBC/GB