Supply bottlenecks help make metals precious
By Steven Syre
April 15, 2006
... GOLD is glittering at about $US600 an ounce these days ...
Silver is up nearly 40 per cent this year, copper and zinc rose to records mid-week and nickel is hot. ...
... The simple rules of supply and demand are driving the prices of most metals sharply higher. Supply of metals is constrained because no one invested sufficiently in extracting and delivering them for many years. Mining companies can't flip a switch to produce dramatically more copper or gold. ...
... Gold prices, the most closely followed, are also the most complicated. The majority of gold supplies are used by jewellers, but prices are influenced most by investors. As with other metals, supply is constrained by a lack of investment in mining. ...
posted by sku @ 3:32 AM
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