NOW TRENDING Recovery of Platinum Group Metals and Chrome picking up !

------------------------------------------------------ UPDATES : -              My specialist lists for September,see side bar   and summer...

About Me

Retired but always looking for new challenges.

Thursday, October 21, 2010

RESOURCES in DEMAND October

 1.We are told that the recovery is slowing down and that its going to take a very long time before the market starts to move rapidly upward again.Well thats how it should be! The market should show solid growth and shares would be rated on the returns they deliver. This might not prove to be the age of derivitive traders then as they can only make money on rapid market changes in volatile trading,what with time decay and high charges and interest charged by the issuers of the various instruments.

So which shares will deliver steady and increasing growth?
Well I can think only of resources,food and health to deliver ongoing returns.At a much later stage ,in about three years time human habitats(houses) will be added to that list again.

 2.On another subject these days I seem to be hammering on RARE EARTH MINERALS AND METALS OR THE LACK OF THEM.On reflection I do not think China is thinking of depriving the world of these metals,as such a policy would lead to thrifting and looking for alternates.A very short sighted policy anyway.The more likely reason is that China  needs these metals itself and there are no more to be found.
 3. At the moment the price of Gold is advancing at almost the same rate as Platinum and only trails it by about $300.In time as panic declines  the gap between the two should revert to the gap as in the past .Namely Platinum being twice as expensive as Gold per ounce as it has it is more widely used and has many valuable uses. 
 4. Xstrata has made significant savings in electricity for its ferro-chrome smelter.As reifineries such as chrome,aliminium etc use vast amounts of electricity ,the question can some time be asked is it really worth it as the rest of us have to suffer ,by power cuts,paying more for infrastructure such more expensive power stations and more for electricity? I hope the other major mining houses will take a leaf out of their book and make major changes to their way of doing things.
  5. The Federal Mint in America is about to mint a five ounce silver coin.Now the question should be asked why?After all silver is not  found in great quantities any more and there are few just silver mines left in the world.It is mined in small quantities usually in gold mines.