THE BOOM AND BUST CYCLE 101
By Arthur Knob Jockey
The first phase of the boom starts, supply is not enough to keep up with demand. Prices start to climb.
Every Tom , Dick and Harry gets a mining permit and hires a drill rig and goes west. There's not enough drill rigs to go round so prices go up.
Marginal mines that were closed start up again.
Supply slowly catches up with demand and the stockpiles start to grow.
Our customers realise this and start to bargain a little harder on price.
Well you know how the rest goes, prices start to fall
the marginal miners close shop and BHP shares return to $5.
And then it all starts again.
spankyham's bull(dust) friday, page-67
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