SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?


To: RealMuLan who wrote (24224)11/2/2006 8:04:26 PM
From: Mr. Aloha  Read Replies (2) | Respond to of 78421
 
<< Another thing to keep in mind is that if commodity price goes too high, consumption is bound to go down. >>

The question is what price is too high? Zinc has tripled in the past year, but there's no letup in the drawdown of LME zinc stocks. The price has to go high enough to bring consumption down enough so that whoever is willing to pay that price gets their zinc. Consumption has to go down, so the price has to go up.