Gartman Letter Last Wednesday:
Finally, we wish to bring to our
clients' collective attention our
growing interest in molybdenum.
"Moly" was brought to our attention
by our old friend, Dr. Mike Berry,
whose interests in the metals has
been long standing and intense.
"Moly" seems to us to have been
left behind the other metals, but
appears to us also to be as critically
essential to global economic growth
as is copper, or zinc, or aluminium.
As the "pie chart" this page
(courtesy of the International
Molybdenum Association" notes,
just over 1/3rd of the demand for
"moly" comes from steel alloys.
Stainless steel demands another
1/4 of the demand for "moly" generally, with another 9%
used in "tool and high speed" steel alloys. What is more
essential to world economic growth than is steel? We
have gotten our feet wet in "moly" in recent weeks, and
have owned a position in one of the few "pure plays"
there, Idaho General Mines, for some while. We have
learned that we don't pay attention to things until we take
a position, forcing us to begin to learn about what it is that
has caught our trading/investing fancy. GMO's chart is
beginning to show signs of strengthening. Nothing our
interests and remaining as utterly transparent as we can,
we bring "moly" generally and "Idaho" specifically to our
clients' collective attention this morning, knowing that we'll
become keener in this regard as we move along.
