Miners don't take it out of the ground for free, it costs an awful lot of money. So much so that many struggle to mine profitably. Occasionally a Resources Boom comes our way and big money is made, until of course the Govt steps in an says it wants 57% or whatever in the good years.
As for the second point:
I see Banks as a service industry, who as you say make very healthy profits. My point would be that while they make good profits they are not the creators of wealth like a healthy Mining, Manufacturing, Primary Industry etc.
The USA thinks it can grow wealthy on service industries alone. I think individual companies can, but not the Nation.
To get more LYC specific.
I sold half my holding of Lynas today. Not because I don't like the company but because I needed to free up some cash
Obviously I am still hold the remaining 50% , so I hope the people who bought my shares make a lot of money.
Shares I bought last year @ 45 cents. So it could be better, but it could be worse.
My originals go back to 2005/06. We nearly made big money on LYC but the GFC stepped in at such a crucial time and we lost financing.
I had expected the market to rally again, but as the weeks rolled on I began to get uneasy.
Europe having a little rally tonight, but it all seems to be getting a little messy.
Anyway regards to all. I suppose we need to have a foot in each camp. We cannot predict the future.
Jim.
LYC Price at posting:
49.5¢ Sentiment: None Disclosure: Held
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