Beginning of the end for mining and high commodity prices?
Are commodities en route for a “Super Cycle Sunset?” Recently I spoke to a number of Middle East traders and investors who highlighted the importance of being able to predict the commodity super cycle to maximize return on investments; of course this is quite obvious for anyone with an interest in financial markets. The more pressing question is, where are we now in that commodity super cycle?
Let’s take the metals sector. A recent article in the Financial Times describes how prices are already down 20% from last year’s highs and many predict that Chinese growth is slowing and becoming less commodity intensive. Moreover, the cost of running and building mines is rising rapidly. So, should we take all these factors to be an indication that the metals super cycle is over? Not necessarily.
Some analysts believe that the sector may strike a counterbalance if mining companies encounter difficulties bringing new supply to the market.
Is this really the end of the metals boom or just a dip in the market? What do you think?
at 1:33 pm
I fully agree that Chinese growth is slow, I still feel that Metals will rebound, in next couple of months. You may call it a dip for the short – time.
We are heading towards Global recession, It’s difficult for one to guess, when the Metal will take a U-Turn.
When any Investor feel that this is the right price take an example of Gold, if someone feel and comfortable to invest into Gold for long term at $1400 or nearby. He will Invest,
Take another example if someone has sold his Gold at $1600, and he buys back at $1450, I think so, the Investor will be happy, that he has made some profit.
at 9:25 am
Sherali that’s an interesting perspective.
Do you have any predictions as to when we’ll be out of this short term dip?