...its not Gold or Silver. Its Aluminum. "A Shuffle of Aluminum, but to Banks, Pure Gold" http://www.nytimes.com/2013/07/21/business/a-shuffle-of-aluminum-but-to-banks-pure-gold.html?hp&_r=0 The New York Times points out that Goldman Sachs, through its acquired subsidiary Metro International, is limiting the supply of physical aluminum in the North American market. I won't try to summarize the entire 5-page NY Times article, but its an interesting triple-play.
aluminium is around a 1.30 a kilo at our local scrap yard. Cant understand how such a versatile metal is so cheap.Ive got 50kilos worth ready to smelt for aluminium castings. It was once considered a rare precious metal rarer than gold & silver back in the day,how times have changed. http://sam.davyson.com/as/physics/aluminium/siteus/history.html
Aluminium prices are currently at their lowest in well over a decade (in A$) principally due to rapid expansion of new capacity driving the price down. The cost effectiveness of recycling is based on the cost of primary aluminium (hence, what is now $1.30/kg would presumably have been $2/kg a few years ago). Simple answer about why it's so cheap is cheap energy combined with the fact that good quality bauxite close to the surface is still plentiful. Weipa, Gove etc have realised alumina at nearly 50% of bauxite ore which itself give 52% aluminium (hence ~25% of the raw bauxite tonnages is aluminium). Compare this to silver/gold at a few grams per tonne.
