RE:RE:RE:RE:Not to rain on the partyIn my post I was trying to provide my understanding as to why when the exchange rate for USD changed the price of commodities (zinc) went up. There are many articles in Google explaining the difference between value and price.
I think the value of zinc has not changed.
Value is defined as: “The desirability of something, often in terms of usefulness or exchangeability; an amount of money considered to be a fair exchange for something; something worth the money it costs.”
what has changed is the price - the amount of US dollars that buyers and sellers are willing to exchange for the zinc.
I would think that this being a buyers market will be determined by supply/demand conditions. At the moment there is still enough refined zinc and buyers are able to acquire what they need. At the same time, sellers know that a shortage is coming and therefore have been able to push the price up.
Based on sellers being able to increase the price and buyers not having a choice but to pay at the higher price since noone is willing to sell at a lower price, this market is more geared towards being a sellers market.
Again the value of zinc has not change only the price in USD.
Higher zinc prices (in USD) will impact miners in different ways depending on where their operations are and on how they pay their expenses.