Confused about metals trading and pricing

Discussion in 'Commodity Futures' started by noob_trad3r, Jun 29, 2010.

  1. I saw this documentary on discovery and they were talking about metals etc..

    This metal called Bismuth only exists at 8.5 parts per billion
    Gold is even more rare at 4 parts per billion
    but silver exists 75 parts per billion

    But silver costs about 300 dollars a pound.
    But Bismuth only costs 17 dollars a pound yet it is 8.8 times more rare.

    So how come Bismuth does not cost 2647 dollars a pound?

    I bought 10 pounds of Bismuth 99.99% for 116.80 bucks just as an investment. Who knows what might happen

    Bismuth is a rare and strange metall. In the frequency (or better rarity) charts of elements in the earths crust it ranks number 69 of the 75 listed. Only 0.008 ppm (gramms per metric ton) of the earths crust consist of bismuth which is less then for platinum which ranks number 68 with 0.01 ppm. Gold is rank number 71 with 0.004 ppm. This means there is only twice as much bismuth available as gold.
  2. gobar


    may be because it has limited use?

    silver can be used in many ways and also people do buy silver jewelry as well
  3. rarity is one and demand is another.
  4. Seems to have good demand. Still I think 10 pounds for so cheap makes for an interesting addition to my portfolio. Who knows what could happen one day. Better to be the early bird. All it takes is some new technology that uses Bismuth for demand to increase.

    Indium metal went from 94 dollars a kg to 700 due to the LCD TV technology.

    I found this site, will read more about this metal.

    The New York dealer price for bismuth, as published in Platts Metals Week, started the month of January at $7.30 to $7.80 per pound and rose steadily through the first quarter, ending March at $10.50 to $11.00 per pound.
    Bismuth prices were on a strong upward trend through the first quarter of 2007, and that pattern continued into April. In mid-April, bismuth prices reportedly were reaching $14 per pound. India, Japan, the Republic of Korea, and Taiwan have all been mentioned as countries currently experiencing strong bismuth demand. Consumption levels in China remain clouded, but Chinese consumption reportedly has increased from 2,000 to 4,000 metric tons per year (t/yr) compared with about 1,000 t/yr a few years ago. China reportedly exported 6,000 t of bismuth in 2006, but may have to reduce future exports if the bullish estimates on the country’s consumption are accurate (Metal Bulletin, 2007).
    Reports from China detailed some of the supply difficulties being encountered there. Shizhuyuan Nonferrous Metal Co., one of China’s leading bismuth refiners, announced that it had only produced 40 t of bismuth in January instead of its usual 60 t, owing to difficulties in mining during the winter and the
  5. So like, are you seeking confirmation for you bias? If you want to go long the metal, go for it. You always have the fact that commodities are one of the first assets that inflation has an effect on.

    That being said, you are talking about a rare metal that has limited use, contrary to what you are trying to convince yourself.
  6. pspr


    So, with your logic, if I make just one painting in my life it would be the rarest of all painting because there is only one. So I should be able to sell it for billions!

    I don't think it works that way. There must be value or perceived value relative to the price.
  7. sumfuka


    Nope, paintings are a dime a million. What looks good or not is a different matter. Point is its not rare. However if you have a metal cap that won't rust in the ocean floor and could magically bond with an oil pipe, that you can sell for billions.
  8. Sure, but look at titanium.

    Stronger and lighter than metal, among the most abundant metal resources on the planet-but a costly, polluting bitch to process.

    Don't be confused by metal trading and pricing-is what is is, now.