Fistly to those who call me a downraper there no such thing. Secondly most of the upside with commodities is based on china, because there are only a certain amount of producers in the lower pecent cost structure then there will be a huge fallout. The problem is a catch 22 because as production increase due to price rises, now that so manny producers are in care and maintanance, when they all start producing at the same time becuase their cost structure is similar, the whole process will reapeat.
This will trend will even effect lower cost producers. In other words it creats a large surplus and will be hard to move unless there is large global growth and commodity prices could be flat for several years.
I have no agenda just find it interesting the blind faith of investors. Even i have been burnt 1.5million loss in this nasty little downturn. I personally wouldnt be touching anything to mid to late 2009.
OZL Price at posting:
$6.30 Sentiment: Sell Disclosure: Not Held
