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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Aloha who wrote (22324)	10/5/2006 11:22:05 AM
From: E. Charters	Read Replies (2) \| Respond to of 78424

I must admit it is entirely different sort of animal than I had first thought. I had pictured it as sort of a medium low grade mine thingie with some hard to extract silver credits, but its picture is wholly different. Usually a projects runs up to feasibility and gradually declines into production. That is in a pure newish explo focus play. I have stated that the market seem to have changed somewhat from explo focus to development these days, partially because of the China syndrome. Despite this phenom, which has captured people's attention slowly there is still the Van Edens and other doubters who aver that it is market spec, long a bug bear of the bearists, which has driven metals prices, not raw supply and demand. If Van Eden were right, then a drop back with funds and errant spec trades holding the bag would be seen to hammer metals like the Sumitomo trading scandal did in the late nineties with copper. Is it possible that spec traders could clean out metals on the LME with front deliveries, and that China demand worlwide is not operative.. that it is a ghost? My thinking is China cannot supply its internal demand, nor can India. Certainly Eastern Europe, nor North America, nor South America are in that much of a growth phase, so demand has to be related to actual consumption, related to construction and industrial expansion, something we know is happening in Asia. This makes me think that any sort of predicted recession is oversold or at least will be strongly ameliorated by Asian demand. The mistake NA economies have made is not ramping up production into this demand. It will benefit SA economies far more as they are geared toward resource production, something Canada shortsightedly has choked back on since the 1970's. Canada's big thinkers have tried to clumsily implement knowledge-working and technology as where to put their money. But they don't have homegrown Mitsubishi's and Panasonics to serve, so the money goes offshore and the tech too. Bad thinking. The place to put our tech is into our strength we have developed for the past 75 years and that is into resource production. Not to be I am afraid. <vent mode off> EC<:-}