The recent rally of commodities has been absolutely breathtaking to Jim Cramer. But he does worry that it could be too good to be true.
As a simple review, commodities rally for two reasons: short supply, or excess demand. It is possible to have one, or both. Either of these options can send the price of the commodity, and companies that exploit them, higher.
Cramer reflected back to 2008 because that was when China's growth started to accelerate, and it created more demand that could not be met by commodity suppliers. That led to price increases in everything. Every material from copper to coal, to iron ore to zing shot up in price.
In response, producers realized that they had to spend a fortune and ramp up to meet China's demand. That meant that huge projects were created to build gigantic facilities from scratch.
"Almost every executive in these industries bought into the notion that China would grow into the skies," Cramer said.