Given the cyclical nature of the mining industry, the high prices of metals experienced two years ago were not to last in 1989. And in most cases they didn’t. But what will 1990 bring?
A random survey by The Northern Miner, the results of which are printed below, turned up a variety of average price forecasts for 1990.
Caution appears to have played a part in many of the predictions (all published prior to the end of 1989). None of the five analysts foresees a return to the higher prices, yet none is predicting a collapse.
Most of the analysts think gold, which averaged about US$382 per oz. in 1989, will do better this year, but not wildly so. Among the base metals, copper and zinc are given excellent chances of holding their own; a stellar performance is not expected from nickel.
All prices are London-based. The London offices of securities firms Shearson Lehman Hutton, Barclays de Zoete Wedd, James Capel and Metals & Minerals Research Services provided the following data. The price forecasts of Andras Research Capital were obtained from the company’s Toronto office. 0310,0310,0310,0407,0300,0211,0000, AndrasShearsonBarclays deJamesMetals & ResearchLehmanZoete WeddCapelMinerals (US$/oz.) (US$/oz.) Platinum 530 525 550 475 (US$/oz.) (US$/lb.) (US$/lb.) (US cents /lb.) (US cents /lb.)
Be the first to comment on "Cyclical Nature"