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To: pocotrader who wrote (32754)	3/14/2010 11:21:49 PM
From: Claude Cormier	Read Replies (1) \| Respond to of 233807

Logical long term. But who can say when the current credit bubble will burst in China or when the economy will take a major rest.

To: pocotrader who wrote (32754)	3/15/2010 7:04:37 AM
From: Proud Deplorable	Read Replies (1) \| Respond to of 233807

Base metal to surpass gold: economist March 15, 2010 - 3:54PM AAP Prices for aluminium, copper, nickel, lead and zinc will rise faster than gold this year as industrial demand for these base metals from emerging economies increases, a leading economist says. Westpac Banking Corp director and senior international economist Huw McKay said on Monday the gold price was unlikely to fall below $US1000 per ounce and there was potential for a rise beyond the current $US1100/oz level. Mr McKay also said the Australian dollar would eventually reach parity with the US dollar. "We see $US1000 on the gold price as the rough floor," Mr McKay told a conference in Perth on Monday. "We don't see immense upside in our formal forecasts but we acknowledge very much that it is there. "I think the Australian dollar will perform very, very similarly to commodities: lots of volatility in the short term, periodic moves to the downside, but medium term, the trend is very positive." Mr McKay said base metals would have a stellar run in 2010, much as gold did last year. "It has been an incredible 12 months for the gold price, predominantly driven by safe haven flows. "The gold price is not going to do as well in relation to other commodities as it did in 2009. "That doesn't mean the gold price is going down, it is just that the relativities to other commodities which are much more leveraged to the industrial cycle are going to start catching up. "So gold is going to lose some relative ground ... there is some modest downside risk in the short term and then a very slow grind higher." © 2010 AAP