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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (5748)	4/23/2006 3:48:52 PM
From: Gib Bogle	Read Replies (1) \| Respond to of 217749

As I understand it: The reason there are PM speculators is that people expect demand to increase as a result of loss of confidence in paper money. The reason there are base metal speculators (e.g. Cu, Zn) is that people expect consumption to squeeze supply in the near and intermediate term. The underlying fact is the rapid growth in demand - in final use - which isn't matched by growth in mine output. I guess in the case of Cu the balance of supply-demand and speculation is less clear. For Zn, I recommend watching this presentation by Harlan Meade, CEO of Yukon Zinc and Pacifica Resources: media.richmondclub.com and this interview with him: wallstreetreporter.com A huge supply-demand gap is predicted for zinc over the next decade, and the price of zinc is expected to skyrocket (this has already started). Time will tell.