RE: Is China''''s Economic Judgement Off-Centre?Hi, Joe. You said:
"Now I ask, If mining costs go up so do the required cut-off grades of extracting and processing the metal. Domestic mining margins go down. This will tend to leave a lot of metal in the ground and work to reduce supply. Domestic zinc prices go up further. Good for us."
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I agree that China's increasing domestic tax on base metals will reduce supply. It's an immutable law of government messing with the operation of a free market... Want more of something? Subsidize it. Want less of it? Tax it.
Simple and incontrovertible.