Commodities move with growth of economies. Whilst the stock market might be going up this has nothing to do with the economy.
The global economy is in a major slowdown and is entering a downward phase.
Let me put it bluntly in saying we are going to have a GFC in the next year or two that will dwarf 2008.
This is not going to be good for commodities one bit. It's called deflation.
The only way spot price of nickel will go up (in the lack of demand) is for the AUD to be devalued. This will happen as the RBA will lower rates again, however the commodity price gains made from a devalued dollar will not counter a major fall off in demand.
Also, a devalued dollar means your $ are worthless.
Once again, AVQ is sitting on a great resource and the company itself has great potential.
The commodity itself is a different story, at least that's the case for about the next 10 years in my view.
AVQ Price at posting:
27.5¢ Sentiment: Buy Disclosure: Held
