Blaster,
Demand is not diminishing. In fact, it has yet too. Until you see regular daily dips below 700, I'd say its business as usual. As for zinc stockpiling, yes that is probably true that is happening to a degree but last year some of the largest world stores got wiped out in New Orleans, so stockpiling is only drawing faster on available levels now, which cannot be replenished with new production until at least early to mid 2008. I also agree that there is a point in time that demand will reduce but we are years away from that. Just watch the BBC's show on emerging Giants that they have been playing all week on India and China and you will see it will be far from a grinding halt and more like a slow decline but in 5-10 years. BHP and RIO are stretched because mineable production is peaking not because they don't have enough demand nor projects and they are on the acquisition path, so therefore you need less people and better acreage. These are quality miners not quantity. I think we are in a transition phase in terms of price that the hedge funds love not hate. They live off it. But I hope you don't outshort yourself trying to outsmart them. They move faster than you. I will sit, hold and wait...as it jumps up and down between 10 and 12.
ZFX
zinifex limited
