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

To: koan who wrote (22741)	10/14/2006 3:32:55 PM
From: koan	Read Replies (1) \| Respond to of 78419

PART FOUR: Which brings us to the present. What happens next? The London Metal Exchange (LME) has almost exhausted its supply of metals. The following are approximations: Two/three years ago or so, there was over one million tons of zinc in the LME and the price was about .34. Today there is only 130,000 tons and the price is $1.72. Zinc charts: kitcometals.com Copper had over one million tons and was under a dollar a lb. Today there is only a little over 100,000 tons and the price is $3.40 a lb. Charts: kitcometals.com Nickel had 35,000 tons and was about $3. Today there is only 4,000 tons and the price is $15. lead: kitcometals.com Few saw this trend: Jimmy Rogers and George Soros did and I expect even they are surprised by its magnitude. Going forward, besides the 2nd industrializaton at hand we now have a worldwide military build up because of the clash of cultures and lack of statesmen. The three gorge dam in china will supply electricity to 130 million people. Imagine how much copper will be needed for the power lines. How much zinc for all the cars and appliances. The same is true in India where they are building a freeway around the entire country and where warehouses full of computer technitions are changing the world. Both china and India have a new middle class as large as the United States 300 million people. Both countries have more computers than the US; and China produes 5 times more engineers and India 10 times as many. As the liquidity grows worldwide, and infrastructure is built, I expect to see a quantitative increase in the consumption of metals not a decrease. And we can see this already in all metals including gold and silver. China used to be a huge world supplier of zinc and is now a huge consumer. And regarding supply: Past environmental apathy has now metamorphased into environmetal hysteria causing the building of new mines very difficult and time consuming. And the new mines they are building are the second and third tier of deposits, most of the easy ones having been mined out. In conclusion, my guess is that we are in a long term secular bull market for all metals going forward. And we will need to start INVESTING in mining stocks (for thefirst time) becasue the world will need to develop deposits like RDV's polymetallic deposit because the world will need the metal. I use RDV's deposit becasue i the fuure I expect it to be the norm and once in production should easily bring a price tag north of $6 which is a 20 bagger. They are hoping to be in production by 2008. Prices for metals not only will remain high, but move as high as is necessary to enable the producton of moredifficult deposits like RDV. 20/30/40 baggers and more will be common in the next 10 years in mining stocks because of the reason presented. Good day and good luck-lol.