onsdag 15 april 2015

Zink price reaches highs in all currencies except the dollar

Since all the commodities are traded in dollars, they all suffer when the dollar goes up (as it has recently). That’s the case for gold and that’s the case for zinc as well.

Here are two charts where we can see the difference between the prices of zinc in USD compared to CAD. The first chart covers a 6 month span, the second a 5 year span.

Zinc 6 month - USD vs CAD.

Zinc 5 year - USD vs CAD.

There are two things to notice here:
  1. The price of zinc was roughly the same in USD and CAD until 2014 when they started to go different ways (the dollar got stronger).
  2. The price of zinc in CAD hasn’t been this high in many years.
You can pick almost any currency and the result is the same – zinc is trading at prices not seen for a long time.

That in turn means that companies with production outside the US and hence costs in some other currency are gonna get a currency boost that should affect the bottom line going forward, all else being equal.

2 kommentarer:

  1. Är väl ett ok hål ;)

    Ivanhoe Mines drills 85 m of 49% Zn at Kipushi