The profitability of the buffer stocks operated under the International Tin Agreements,1956–77

In this paper estimates are made of the profitability of the tin buffer stocks operated under the International Tin Agreements. The issue of buffer stock profitability is important because under UNCTAD's Common Fund proposals some funds will be raised from money or capital markets and commercially competitive rates of interest must be paid. If a buffer stock fails to be commercially profitable, these interest payments will have to be subsidized from governmental contributions or elsewhere. Although it does seem that the International Tin Agreements have been broadly self- financing, the limited influence that they have had on market price fluctuations still leaves open the question of their usefulness.