Are both reports by the same Allen Sykora of ***** News?
Whether demand goes up or down, the price of metals must increase over time due to the cost of production.
A house that cost $20,000 forty years ago now costs $400,000 to build. Not because the demand is 20 times higher but because the construction costs (wages & materials) are higher. If demand drops to the point where production costs are higher than the selling price then mines will close, supply drops below demand and the price rises again.
Those miners (AVB) that have lower end production costs will benefit during high or low demand.
AVB Price at posting:
10.5¢ Sentiment: Buy Disclosure: Held
