Economies thrive on the movement of prices of various commodities, securities, and financial instruments. When the price of a tradable unit drops, the industries that produce and sell that item suffer from lower earnings. On the other hand, the industries that rely on that tradable unit are able to do business with lower overhead. Vice versa, when the price of a tradable unit rises, the manufacturers and sellers are able to earn more. This is precisely the situation faced by Australia today with the rising price of copper due to the increased demand for it in China. The Sydney Morning Herald’s Stephen Cauchi reported in an October 15, 2014 article:
http://www.globalresources.net.au/scrap-metal-merchants-can-augment-supply-stabilise-copper-prices/
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