AI
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| Alias Born | 07/15/2002 |
Saturday, May 17, 2003 3:44:40 PM
tf...as I was just explaining to a friend a moment or so a ago, that I'm not a goldbug as much as I am a CRB enthusiast. My strategy all along has been to play the inverse relationship of the CRB index in regards to the USD. When one specific commodity gets too hot there's always another one to play. Jimmy Rogers likes coffee, sugar and wheat-- I like both nickel and copper:
The supply shortfall dynamics of the gold sector also applies to the base-metals. Earlier this week on RobTV there was a representative from Price Waterhouse and he was lamenting about the lack of exploration and the aging and depleted state of Canada's mines. Back between the years of 1980 to 1990 the mining industry spent $167 million per year on exploration in the province of B.C. alone. Last year, only $40 million was spent, up from $32 million from the year before??? However, he didn't say if those were inflation adjusted dollars.
In any case...mines are being shut down, like Kid Creek in Timmins and there isn't that much in the supply pipeline considering the dearth of exploration. Anyway, I'm betting that growth in China's consumption is putting in the floor here as prices continue to stabilize-- like the copper chart above indicates.
The supply shortfall dynamics of the gold sector also applies to the base-metals. Earlier this week on RobTV there was a representative from Price Waterhouse and he was lamenting about the lack of exploration and the aging and depleted state of Canada's mines. Back between the years of 1980 to 1990 the mining industry spent $167 million per year on exploration in the province of B.C. alone. Last year, only $40 million was spent, up from $32 million from the year before??? However, he didn't say if those were inflation adjusted dollars.
In any case...mines are being shut down, like Kid Creek in Timmins and there isn't that much in the supply pipeline considering the dearth of exploration. Anyway, I'm betting that growth in China's consumption is putting in the floor here as prices continue to stabilize-- like the copper chart above indicates.
FP........................................................
