Fundamental Stats -

Strong Asian demand continues to dominate the copper market. On July 21, 2008, the International Copper Study Group (ICSG) said that its preliminary data showed that world copper consumption outpaced production by 108,000 tons in the first four months of 2008, down from a 245,000 ton deficit a year ago. World mine production was down 3% in the first four months of 2008 from a year ago, due to strikes and operational problems. In all of 2007, world mine production was up 3%, but total production still fell short of consumption by 54,000 tons.

On April 24, 2008, the ICSG predicted that 2008 will show a world production surplus of 85,000 tons followed by a 429,000 ton surplus in 2009. World mine production is expected to increase 6.2% in 2008 and 9.2% in 2009. London inventories of copper started 2007 at 182,800 tons and ended the year at 197,450 tons.

World Copper Mine Production (million metric tons):
1997	1998	1999	2000	2001	2002	2003	2004	2005	2006	2007	2008
11.5	12.2	12.7	13.2	13.6	13.6	13.8	14.6	14.9e	15.0e	15.4e

Fundamental Stats -

In six short years, the tables have turned dramatically for gold. In 2001, the production costs of gold were roughly $160 per ounce as prices dipped to $270. Then in early-2008, production costs rose to $400 to $500 an ounce as prices briefly hit $1,000. Just as the outlook for gold was too gloomy in 2001, it probably got too rosy early in 2008. Much of the credit for gold's rise can go to the consolidation that has taken place in the mining industry. In early 2002, Newmont Mining won the right to buy Normandy Mining of Australia for $4.56 billion in cash and stock, becoming the world's largest gold producer. On August 5, 2003, the world's second largest producer, AngloGold Ltd., bought Ashanti Goldfields for $1.09 billion. In 2001, Barrick Gold bought Homestake Mining to become the world's third largest gold mining company and then on October 31, 2005, announced its bid for Placer Dome, the world's fifth largest gold producer. This activity led to more disciplined production decisions while the U.S. economy and dollar stumbled.

The heaviest burden on gold typically comes from central bank sales. In September of 2004, a new five-year agreement limited sales to 500 tons per year. Potential sellers are Germany, France, Switzerland, Spain, and possibly Italy. On June 14, 2007, the Swiss National Bank said that it will sell 250 tons of gold over the next two years. On April 8, 2008, the International Monetary Fund let it be known that it may sell 13 million ounces of gold over several years to raise cash.

On April 9, 2008, GFMS Ltd. said that they expect the price of gold to reach new highs in 2008, but in spite of that, production levels have not yet increased. GFMS said that world mine production was down .4% in 2007 to the lowest in eleven years and, for the first time, South Africa was not the largest producer - China was. GFMS Ltd. expects the same level of world production in 2008. On May 20, 2008, the World Gold Council said that world gold demand was down 16% in the first quarter from a year ago, due to high prices. In the same quarter, world mine production was up just slightly from a year ago.

World Gold Mine Production (million troy ounces):
1997	1998	1999	2000	2001	2002	2003	2004	2005	2006	2007	2008
77.5	79.1	81.7	83.1	84.3	83.3	83.4	79.4	81.9	79.9e	79.6e

Fundamental Stats -

Until prices exploded higher in late-2003, it was hard to find anything positive to say about silver. The main changes have been the consolidation that has taken place in the gold and copper industries and the difficulty in developing new sources of production. As much as 75% of silver's production comes from gold, copper, lead, and zinc mining which is why changes in these other industries have a large impact on the price of silver. On the demand side, silver (like most commodities) is benefitting from stronger world growth (especially Asia) and concerns about a falling U.S. dollar.

Fundamental data is hard to come by for the silver market, but the Silver Institute said that world mine production totalled 671 million ounces in 2007, up almost 4% from the previous year. 2007 fabrication demand totalled 844 million ounces, up 1% from the previous year. Overall, fabrication demand has held up well in spite of higher prices.

World Silver Mine Production (million ounces):
1998	1999	2000	2001	2002	2003	2004	2005	2006	2007	2008
542	557	591	606	594	601	621	644e	647e	671e