Raw materials and commodities

DISCUSSION OF RAW MATERIALS AND COMMODITIES TO COME.

Prices of base metals— copper, aluminum, lead, nickel, tin and zinc— are, in general, highly sensitive to economic cycles. During slow economic periods, hardly anyone invests in commodity production. When economic activity picks up, production and therefore supply usually lags demand. Prices may rise dramatically.

Once production and supply overtake demand, if demand slackens, prices may fall substantially.