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Gold/Mining/Energy : Silver Bull Resources, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Aloha who wrote (1339)	12/12/2007 12:17:00 PM
From: Mr. Aloha	Read Replies (1) \| Respond to of 5637

Zinc big picture, as posted on zinc thread (http://siliconinvestor.com/readmsg.aspx?msgid=24128720 ): Market players are wary the possible removal of the 5 percent export tax rebate on super-high-grade refined metal and levy of a tax on exports might lead to a surge in Chinese exports to beat their introduction of up to 100,000 tonnes. Instead of a surge of 100,000 tonnes added to LME zinc inventories, those inventories have dropped for 30 days straight: while the LME inventories for all the other metals have moved consistently higher for the past 30 days (http://www.kitcometals.com/charts/lmewarehouse.html ). IMO, this phenomenon indicates that China doesn't have the excess inventory to dump on the international market that analysts thought they had. I think the Chinese zinc supply/demand situation will surprise a lot of analysts, as the Chinese are "sucking up the world’s growing supply of zinc mine output" (http://siliconinvestor.com/readmsg.aspx?msgid=24010553 ). I think the zinc shorts will be in for a rude awakening when the expected huge surge in zinc oversupply doesn't materialize as expected. Longer term, the 5-year chart of LME zinc inventories shows much more depletion than any other metal, with a 90% drop since 2004 and no signs of a reversal: With the fundamentals for zinc arguably much stronger than for any other LME metal (Why Zinc has Underperformed This Year: greatinvestments.blogspot.com ), the zinc price down this year far more than any other metal (which will force a lot of index fund buying in the new year), and overestimation of zinc supply, as evidenced by the continued inventory depletion despite expectations of a huge surge of supply, I think zinc and quality zinc mining stocks are set up for a strong rebound in 2008.