Exclusive Commentary from newsletter writer John Kaise
By Stanlie Hunt Printer Friendly Version May 11 2007 3:27PM
www.smartstox.com
At the Cambridge House Calgary Resource Investment Conference, Smartstox talked with John Kaiser of Kaiser Bottomfish Online about his thoughts regarding the general economy and where he believes the commodity markets will be going.
John looks at trading patterns around the world as an element of his work and remains steadfastly bullish about the future for natural resource commodities going forward. He does note that the sub-prime mortgage issues and the relationship (or lack thereof) of the US with Iran provide good reasons to be concerned about the economy, but he thinks these issues will remain relatively contained.
A key theme of John’s is that across the board really, metal prices have risen and are now establishing new ‘norms’ where the prices seen in the past won’t be seen again. (Remember 50¢/litre gasoline, only a few years ago?) Companies with holdings that contain metals like molybdenum, which moved from $3/lb to $40/lb a few years ago and has now has stabilized well above $20/lb, stand to benefit significantly from this new price standard. Many deposits in BC and around the world become economic with these price levels.
John sees this as an example of what is, or will be, happening across most of the metals. There may not be much upside left in the price of metals, but the current prices means there are many junior resource companies who both hold increasingly valuable property currently, and will be generating new projects, as well. John sees an active exploration and development sector for years to come.
One of metals with the brightest outlook is uranium, as the world is near the end of the decommissioned nuclear weapons supplies and more mine supply is needed. As John notes though, the general public still isn’t crazy about having a uranium mine in their own backyard, so bringing new supply into production will continue to be a challenge.
Click here to watch our interview with John Kaiser.
THR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
