Parallels between graphite and lithium are superficial, insists the analyst with Industrial Minerals. Graphite, unlike lithium, supplies layers of demand, with reliable end-users in the steel industry. Meanwhile, China is making way for market entrants.
Gold bullion prices rallied to $1,789 per ounce Friday morning in London - down 3.6% from last week's close - following a sharp drop that began the previous day after key central banks announced they will begin US dollar liquidity operations.
Although lithium is not in short supply now, electric and hybrid vehicles could soak up new production of the versatile light metal. The economist for Chile-based signumBOX, elaborates on small exploration plays that could move up.
Tuesday's trading action opened under somewhat more subdued conditions as a slight easing in the level of apprehensions surrounding Japan and the MENA region induced global investors to seek more profits in equity and risk.
Monday morning's New York trading sessions opened with robust gains both in black and yellow gold as speculators continued to add a healthy dose of fear-based premium to both commodities, and as they sold the US dollar off some more.
Japan's economic outlook now appears far more dire than I anticipated only a day ago. It looks like GDP growth rate is going to instantly flip from +2% to -3%, a swing of -5%, similar to what we saw after the Kobe earthquake in 1995.
The world's third largest economy came to a virtual standstill as one of the more powerful earthquakes in recent memory, and, indeed, in recorded history, struck Japan and unleashed a literal tidal wave of death and destruction overnight.
Disclosure requirements for mining and energy companies included in the newly enacted U.S. financial reform law should become a global standard for corporate transparency, the Obama administration said.