SI
SI
discoversearch

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 and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?


To: koan who wrote (22740)10/14/2006 2:58:20 PM
From: koan  Read Replies (2) | Respond to of 78419
 
PART THREE: why mining stocks will rise more than people think going forward.

Which brings us to the present. In the summer of 2005 I could see the perfect storm for mining stocks rising. This was due to several things:

1) supply and demand: 2nd industrial revolution caused by the new global village. China and India were on a tear and the rest of the world was close behind.

2) massive liquidity cause by gigantic trade imbalances with the US and worldwide liquidity e.g. the japanese carry trade and very low interest rates.

3) Modernization fueled by the internet and new free trade agreements.

4) Most good metals deposits had been used up and almost no exploration for 25 years.

5) End of the cold war.

6) Modern industrialization. But mostly the rise of China and India. And now with high oil prices Russia and the middle east are joining China and Russia and Consuming like crazy (building millions of cars and appliances) and building huge strucures like pipelines everywhere. And South America modernizing with new democracies. In the middle east one trillion dollars in construction is taking place and they have 20% of the worlds largest cranes there.

7) The world population of 6.5 billion is growing at the pace of one large city every day!

I saw this coming and started heavy investing (by my standards-lol)in the summer of 2005. I started by buying almost all wts: SLW (all of them), HBM (lots at .05), BWR and K wts. Then when they flattened out in price I switched to stocks like ECU in the pennies (thanks GWR!), MAI EXN and others I remembered from the old days.

I am up several hundred percent as I pen this. But the best is still to come! In my opinion.