Growth in emerging markets is fueling much of the demand for steel and other metals with industrial applications, such as silver and copper (futures for which are held in DBB, along with aluminum and zinc).
Yesterday, we noted that China has doubled its number of steel factories in the last few years. Silver is scarce, as well, with dealers paying a premium over the spot price. A strike at a Chilean copper mine run by the world’s largest copper producer also raised concern that prices will increase as supplies fall, reports Claudia Carpenter for Bloomberg.
For full disclosure, some of Tom Lydon’s clients own shares of GLD.
