Although the short-term outlook for tin and other industrial use metals is understandably bleak at the moment, the long-term projections for the dull base metal show it is likely to outshine the majority of its commodity cousins once the current crisis abates.
Although lower tin prices may appear to be a sign of a faltering market, many metals analysts say the supply market remains increasingly tight and a deficit is expected this year. There is a huge contradiction of what is happening to the price and the underlying state of the market.
Tin prices have dropped to their lowest level in over a year as the global financial crisis continues to cause concern that economic slowdowns worldwide will substantially decrease the demand for raw materials.
The base metals are down for the year, with tin and nickel suffering the most. Each has lost more than 25% in the last quarter. After Congress voted down the $700 billion bailout plan, tin prices hit their weakest level since September 18, dropping 6.3% to $16,680 on the LME.
As with most investments there are risks and rewards associated with commodity investing, often in lock-step. Many investors hire experts to manage their money rather than doing the investigation required to increase the chances for success. But...
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