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Gold/Mining/Energy : Imperial Metals (IPM.T) -- Ignore unavailable to you. Want to Upgrade?

To: refugee investor who wrote (336)	4/14/2010 1:09:02 PM
From: teevee	Read Replies (1) \| Respond to of 1366

copper price is about $3.60/lb. Some analysts argue we will experience Japanese like deflation-stagnation, and others argue for inflation arising from continued quantitative easing. I side with deflation-stagflation IF the money flow goes largely to capital projects in the public and private sectors (infrastructure renewal and expansion, military procurement programs etc). This also implies a longer period of low interest rates than many "talking heads" expect, or at least a slower increase in rates (large, long term infrastructure projects require stable periods of low interest rates to attract capital and the Fed will accommodate). If the inflationist view turns out to be correct, copper will someday get to $8.00/lb. Few if any of us will be any richer in terms of purchasing power. One way to protect purchasing power in the inflationary scenario is to own commodity based stocks. As inflation drives commodity prices (and costs), resource companies will benefit along with their share prices.