People seem to forget the importance of Iron Ore and Coking Coal in the development of countries from third world countries to manufacturing power houses!
During the 20 years after WWII, Iron Ore was restricted in supply to countries in the West which was used to rebuild a ravaged Europe.
As we begin to see stronger synchronised world growth we will see a long term elevated price for the mineral.
Spot Prices of between $100-130 are to be expected for 2H 2010, and an increase to around $120-140 in 1H 2011 as the markets will begin to realise the US Economy is actually running reasonably well and wont double dip due to increased private demand and production, as well as the Austerity MEasures in Europe not having such a big negative affect on their GDP Growth, again because the private sector will take up a lot of that slack!
These miners in production are definitely long term holds!
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