Published on : Apr 23, 2015
The precious metals such as gold are in low gear, although miners are trying to have a better look. A lot of the Oxford Club Members are trying to give a fill to their metal portfolios.
There is speculation about zinc to outperform this year. Since mid March, the metal is up by 12.9% already. The numbers are much better than gold and market estimates are it is going to go even higher.
Zinc, though not a precious metal, but in terms of usage is magical. The industrial metal is used for batteries, galvanized-steel for auto parts, and medicines. Zinc when combined with copper becomes brass, so probably it is present in the plumbing mixtures. And it works magical as a sunscreen. However, magical it may be it has to be mined. Sadly, the mines are depleting.
Also the idea about opening new mines does not work. This is so, as zinc is not abundantly available it makes only 0.007% of the Earth’s crust. Miners trying to find new zinc deposits have travelled as far as Greenland, and the hunt is still on.
On top of this, zinc supply is not making for the demand. Last year in 2014, the refined zinc supply fell 310,000 metric tons short of the demand. The dip was the largest since 2005, as per International Lead & Zinc Study Group Data. The gap could widen to up to 2 million tons by the year 2017.
To keep the demand, zinc stockpiles have been used. In the last one year, London Metals Exchange warehouses have witnessed reserves drop by 40%.