chinese zinc analyst comments, page-17

Andy, the problem is though, where is that fundamental level? You sure can't find it graphically because it goes way above it and way bellow it from speculation.

We know the long term price/stockpile ratio says prices are way to high now, so this can’t be the level. It is lower then current prices.

If you look back to past booms and busts such as the Germany spike and on other metals after Japan and Taiwan booms, the long term fundamental level when speculation dies out is well bellow the 50% level.

That 50% level on spot prices is about $1.20. And that’s where this market is going to want to go.