Here we go again.Usually it is some fear about China sinking...

Here we go again.

Usually it is some fear about China sinking without trace but now we see a sea of red in the market because the Dow is down and the US dollar is down the toilet.

As one poster (was it Savtin) correctly said, if the US$ is down then there will be a natural tendency for all those commodities denominated in $US to rise. After all there are other worthwhile hard curencies in the world.

Being AGM specific, all its production is going to Jinchuan in China and those Renmembi will be converted into $A at of course the $US denominated PON.

Nickel is in demand, sure the US is a big economy but reality is the real growth anyway with regards infrastructure and building is in the developing world, China, India, Brazil etc. If the Yankers can't afford the goods, there will be someone else to take it. Long term Nickel and Zinc will be tight.

No reason for AGM to go down today but that is what happens when the scared cats run for the door.

Chinkiat