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To: Jack of All Trades who wrote (104560)5/24/2001 3:00:24 PM
From: craig crawford  Read Replies (2) of 436258
 
>> But in a simple sense, when there is no demand, production is cut back, hense sending the supply shinking at some pt... <<

This has started long ago. Seems like there are a lot of mining company fans here. I'm sure you are all aware of how many mining companies have gone belly up or consolidated over the years. Well that hasn't happened just with mining companies, it's happened with many commodities.

Commodities markets have boom bust cycles just like stock markets. In 1980 oil companies and precious metal miners were all the rage. They were the internet stocks of their era. Well obviously the same thing happened then as we see now. Too many miners all chasing after the same high price of gold. Too many oil companies were created because people thought oil was going to $100 a barrel.

Too many internet/fiber/semiconductor companies have been created in the last 10 years and now there is going to be a glut for the next 10 years. After 20 years of pain, we have finally started to work off the excess inventory of resources everyone was chasing after in the 70's. Shortages are popping up everywhere. First it was oil, then natural gas. More recently coal and electricity. Also metals like Pt/Pd popped. Now we are seeing gold and silver rise from the dead. Are you sensing a pattern here? Commodities are making a comeback, and it's our job to identify what are the next ones that are going to be in short supply.

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