Replies to post #17927 on Value Microcaps Junior Miners

[nutsaboutgolf2001]

Base Metal Prices and LME Inventories

Yes LME inventories are bothersome but I pay more attention to prices than inventories myself. Remember LME inventories are just a small part of the inventory picture. I'm sure the Chinese don't keep significant inventories at the LME and then there are inventories in the hands of thousands of end users. I wonder with the increasing importance of Brazil, China, India and Malasia whether LME inventories are as meaningful as they once were? There is still an awful lot of base metal capacity shuttered so it shouldn't take much of a demand pickup to reverse the inventory situation. So I'm still a bull at this point in time.

But I've been heavy in base metals for some time now and have enjoyed huge gains, not sure how I would feel if I were late to the party. Still at this point in time, of all the base metals I think moly has the best return to risk prospects.

I should add that many base metal stocks have performed exceedingly well not only because of their exposure to base metals but because of their precious metal by-product production (HBM.TO - silver and gold, FNX.TO gold, platinum and paladium).