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“Any commodity that sees its price going higher will see new mines opening up. When the supply increases, the prices soften. When prices fall, some mines with higher production costs will shut down as they become unviable.” quote by Gautam Adani
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“Any commodity that sees its price going higher will see new mines opening up. When the supply increases, the prices soften. When prices fall, some mines with higher production costs will shut down as they become unviable.”

Gautam Adani

About This Quote

Source Speech: Economic Outlook, 2022

Higher commodity prices attract new production, which later increases supply and lowers prices, causing less efficient producers to exit.

In simple terms: Prices rise, new mines open, then prices fall.

Key Takeaway

Understand market cycles.

Themes

economics commodity markets supply‑demand

Mood

analytical pragmatic

Type

business educational

When to use this quote

  • investment planning
  • energy policy
  • market analysis

Key Concepts

resource economics industrial strategy

Questions to Reflect On

  • How do you hedge against price swings?
  • What signs indicate a cycle shift?
A Different Perspective

Market predictions can be volatile.

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