Tungsten has experienced a rapid price increase, rising from about $380/MT to around $3,180/MT in 18 months, with gains exceeding 800%. The metal is described as unique because it has extremely high tensile strength, the highest melting point of any metal, and a density similar to gold. It is used in drilling equipment, aerospace, semiconductors, and armor-piercing munitions. Low prices in the 1990s led to the shutdown of many tungsten mines, contributing to underinvestment in new supply. A supply-and-demand pattern similar to silver is described: long periods of low excitement and stable pricing, followed by gradual industrial demand growth, then a sharp repricing as supply becomes constrained.
"Tungsten has a number of properties that make it unique, and some consider it an "alien" metal, because it doesn't conform to parameters exhibited by other metals. Some of these include: Highest tensile strength in pure form of all metals and is immensely hard. Has the highest melting point of any metal - 6,192 °F. Tungsten's density of 19.25 g/cm3 is nearly identical to gold's 19.30 g/cm3 and was once an often used substance to make counterfeit gold to fool displacement tests and weight scales."
"Used for manufacturing of drilling equipment, aerospace, semiconductors, armor-piercing munitions, and other applications. Due to low commodity prices in the 1990s, many tungsten mines were shut down. Drastic Supply and Demand Imbalance There is a market pattern that both silver and tungsten have traveled that make the current state of tungsten's future prospects to be equally bullish."
"The pattern has three levels: Zero excitement, humdrum industrial metal use, stable pricing in a fairly narrow range for years. Underinvested for new supplies as costs make profits negligible. Industrial demand increases gradually, pricing r"
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