A look at Kitco’s charts on London Metal Exchange (LME) zinc warehouse stock levels shows that zinc inventories are nearing a three-and-a-half-year low.
That’s good news for zinc prices. Why? As Doug Ramshaw recently explained to Zinc Investing News, the metal technically went into deficit in the last few months of 2013, but that news hasn’t had much impact because inventories are still quite high. Thus, as inventories decrease, prices for the metal are likely to move upward.
Here’s a look at the charts: