Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: 200ma who wrote (64732)	2/27/2001 7:31:02 PM
From: russwinter	Read Replies (1) \| Respond to of 116916

I'm not that familiar with steel, but in general there has been chronic under investment in the resource and commodity sector, and a massive misallocation of capital into the TNT bubble. If steel is used for rebuilding the energy infrastructure (?) it might be worth a look. When was the last major capacity built? Twenty years ago like everything else? If so it could be soon be expensive and in short supply. Interestingly John Hathaway's latest piece just came out and Alex posted it. It is another classic, a must read and it deals with this very issue. I am in complete agreement with his message. There is a huge secular play ahead in all kinds of neglected areas of the old economy, especially resources and commodities. I would call it the myth of physical supply and the great rebuild of the old economy. Message 15419369 With gold you get an added nuclear bomb thrown in, given it's misuse as an instrument of excess credit creation/ nouveau finance on top of the standard resource and old economy infrastructure neglect of the last decade. Gold's a special case with incredible upside. But add a lot of other things as well: copper, silver, oil and natural gas, food (look at Conagra's squeeze because of energy costs, the cost of farming just got marked up as well). Platinum and palladium? Use this correction to get on board that play as well. Really the underlying stocks in that arena trade like PGE prices are going to 200. Nonsense! In the next five years, enormous amounts of wealth are going to get transferred to the holders of these resources. And the nice part is that now is just the beginning.