SIMON BROWN: Riding the commodity cycles
From gold to coal, commodities face mounting challenges as supply chain issues and regulatory hurdles disrupt production
03 April 2025 - 05:00
Commodities are inherently cyclical, and I’d take it a step further and say they’re boom and bust, especially for the miners.
With any commodity (precious, industrial or agricultural), a sustained price increase will result in more supply being brought to market as the miners or farmers want to maximise their profits. This leads, in time, to an oversupply of the commodity, which pushes prices lower again. Producers then reduce supply, creating a shortfall that ultimately sends the price higher...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
This article is free to read if you sign up or sign in.
If you have already registered or subscribed, please sign in to continue.
Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.