Cobalt is among the essential metals in military and industrial applications. It is also useful in producing superalloys that make aeronautical engines. Cobalt production, however, depends on the production of abundant metals as it is a by-product. That makes its price relatively volatile.
Among the most significant factors that affect this fluctuation of price in the cobalt price chart include:
The Value of Dollar
The USA is the largest cobalt consumer in the world. As a result, the value of the U.S. dollar affects the price of cobalt; when the value of the U.S. dollar is high, the consumer buying power decreases. Any changes in the exchange rate can then dictate the pricing trend of cobalt.
When there are metals that are good substitutes for cobalt, the prices lower drastically as that reduces the reliance of industries on cobalt. This further lowers its demand; therefore, driving the prices lower. The prices of cobalt reduce further when the supply of the substitute metals is high.
Like other metals, the prevailing global economic conditions affect the cost of cobalt. When the economy of the buying or manufacturing nation is steady, cobalt price increases, and vice-versa. Therefore, an ideal time to buy cobalt at low prices is when the economic conditions dip.
Whenever the countries that produce cobalt experience any political or economic instability, these geopolitical issues affect the mining activities in the negatively. As a result, the supply of cobalt in the market lowers and the prices increase due to the high demand from consumers.
Cobalt is among the trace metals in the world, a quality that adds to the volatility in the price range of the metal. Checking the cobalt price charts can help you identify the current and past prices of this precious metal. Traders, however, should then seek to understand the actual factors influencing its worth to plan their purchase schedules accordingly.