Information on gold, lithium and iron ore present and future prices are presented below.
All opinions expressed are those of the author.
By Charles Kubach, Mine-Engineer.Com
28 July, 2020
Lithium prices in November 2019 were $5,800 per ton. On July 28, 2020, it was selling for $3,900, losing 32.7% of it's value. This downward trend started last July and was exacerbated by Covid-19. Since the primary use of lithium is in battery manufacture, which might partially be explained by a 18% drop in sales of E-Vehicles so far in 2020. The forecasters expect E-Vehicles to double their sales in the next 3 years worldwide. If that prognostication is correct, that will perk up lithium prices and mining, and processing of the ore.
Iron ore in November 2019 was selling for $77/ton. On July 28,2020 it is selling for $108/ton. A nice increase in the age of Covid. Infrastructure and building must go on as "essential" activities, and this has benefitted Iron Ore by a 40% increase in its price.
Gold, in November 2019 was selling for $1,452/ounce. On July 28, 2020 it is selling for $1,970/ounce. That is a 36% increase in its price, and it should continue to rise, as it is both a good investment and a preservative of wealth, during troubled times. Bank of America has predicted a $3,000/ounce price at the top of the gold market. It may do it, but if it gets to $2,500/ounce, I would be very tempted to sell, as "pigs get slaughtered in markets", as the investment guru's say.
How long these troubled times will last, and how close we can obtain some resemblance of "normal", will pretty well be the major factor in the price of the above commodities.
Return To Precious Metals Page Page