Unfortunately that entire point of view is flawed. The idea that raising interest rates means 'no demand' for copper or zinc is monumentally stupid. What people fail to consider is that inflation and interest rates are linked. It is when the cost of money is below the rate of inflation that an economy can run right off the rails. The ideal monetary regime would have interest rates exactly in line with inflation as a means to moderate growth.

Right now in North America we have wildly understated inflation at the same time as historic low interest rates prevail. This is an unstable situation that is guaranteed to create a crisis. Savers are not rewarded with a fair return on capital, and in order to win a reasonable return on investment money must be committed to risky ventures. This is where speculation becomes widespread and is part of the reason why commodity prices are going through the roof. It is part of what is fueling the very inflation that our government pretends does not exist. We are creating an inflationary boom through the failure to raise interest rates on this continent. Add in rampant money printing and you have the recipe for disaster.

Compare that to the situation overseas in countries like China where there is some attempt to restrain growth through capital controls and interest rate increases. This means the pace of development is controlled, and NOT that all development and consumption is halted. Note that China has embarked on a policy of moderate rate increases now since last year and demand has remained firm for all commodities. This demand is due to demographics. Inflation or not, people still need to eat, heat their homes, commute to work, etc.

China too faces an issue of negative real interest rates, which is a problem. At least they have confronted this problem by raising rates moderately. They are a much larger country and trying to manage a much higher overall economic growth rate, with the challenges of stability that go with growing pains already baked in. One should not expect the process to be orderly and without problems along the way.

A side note to all of this is that China is actively encouraging its people to buy gold and silver. This is in stark contrast to the propaganda circulated in NA to discourage PM ownership. And it is in contrast to the gambling speculators mentality that has taken over in NA. Chinese people have a historic affinity for gold and silver, and understand that it is the supreme form of money. Far from an interest in gambling the Chinese purchase of bullion is likely to be a stabilising force for their economy as inflation worldwide steps into high gear.

So I am not impressed by the shrill warnings of idiots that claim raising rates must end metals consumption. It is likely the nations of the world will be far behind the curve to raise rates fast enough to reign in inflation. Gold and silver will continue to rise until the real rates of interest exceed the inflation rate. I doubt I will see that here in NA while I am alive.

cheers!

mike