Unlike most other commodities, precious metals have less to do with supply and demand and more to do with macro-economics. In today’s markets, gold and silver are less industrial commodities and more financial instruments.
China’s stock markets continued their decline overnight with the Shanghai SE Composite falling another 4.64% and down of 32% since June 12. Markets have begun seizing up as sellers overwhelm the system.
When the market bears are growling, contemplating a trip to a showcase of the companies currently in the grip of that punishment can seem daunting, but resource experts say now is exactly the time hard-core investors need to be out talking to management, hearing their stories and figuring out which companies will be on top when the good times come.
Despite the collapse in broad commodity prices, numerous specialty metal prices have held or even gone up in the last few years: companies with the potential to produce these metals couldn't attract capital, and the tightness today is now likely to become shortages tomorrow, says Richard Karn, managing editor of The Emerging Trends Report.