http://www.kitco.com/ind/Lee/jun202008.html
Some accuse me of being overly technically oriented and ignorant of fundamentals. Fine, there are some that attribute base metal price action to inventory levels. If such a relationship is held true, zinc should not be trading at roughly 1/3 of its 2007 high of $2.2/lb, because the difference of inventory levels between now and then is negligible by historical standards. In fact, inventory levels have never been a good forecast for future metal prices.
Buy Low – Sell High
To borrow the overused Buffett line, “buy low, and sell high”. This is particularly applicable in commodity investment since metals such as zinc will never be made obsolete in my lifetime. Against rapid currency debasement and $4 trillion held at central banks of emerging-growth countries around the world, my view is:
Oil and Copper – risky investment
Gold and Silver – Good value and entering a blow off phase.
Zinc, lead, and nickel - Current prices will prove to be extreme bargain (particularly zinc at 80 cents) looking back 2-3 years from now.
OXR
oxiana limited
