Commodities

Supply Shock

Definition

What is Supply Shock?

An unexpected change in available supply that materially affects prices.

Example in practice

A mine closure creates a copper supply shock.

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A scarce metal commonly held for industrial use, jewellery, or investment.

A precious metal used as jewellery, an industrial input, a reserve asset, and an investment.

A precious metal with both investment demand and extensive industrial use.

A company that finances producers in exchange for a percentage of revenue or output.

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