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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts
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ajtj99
To: Jacob Snyder who wrote (40020)10/18/2021 11:44:52 AM
From: Sun Tzu1 Recommendation  Read Replies (1) of 96690
 
*Long Term* the price of every commodity should drop to its cost of production. And in fact there are many periods for which we find the commodity price *below* its cost of production.

But in the periods following great under-investment and commodity prices below cost of production (they tend to go together), as has been the case with uranium, the commodities will outperform almost all markets.

I remember when during the dot-com bubble gold went bellow $200 and the cost of production was $250 (or 225). That is when I knew I should invest in gold. I used the same logic for oil last year and uranium this year. I got out of oil too soon :( But it was still a 7x gain in about 4 months, so it was hard not to expect a pullback.
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