5 April 2006

Kitco - Contributed Commentaries

Kitco - Contributed Commentaries: "Many financial-market analysts and commentators have given attention to base metals lately because of the recent bull-to-date and all-time highs being achieved. But for stock investors it is the stocks of the companies that produce these metals where the real excitement has been. These highs directly spill over into the financial performance of the companies that bring the copper, zinc, nickel, aluminum and lead to market in turn positively affecting their stock prices.
At Zeal we also see the writing on the wall and embrace the incredible opportunities that exist in this sector. As gold is consolidating and brewing its next upleg, we have focused much of our attention lately on the base metals front in order to flesh out these opportunities.
Now in order to build a foundational understanding of this base metals bull market it is imperative to understand its drivers. I’m not going to dig too deep into the fundamentals right now, but simply put, we are in the midst of major economic imbalances for these commodities. For several years now demand has outstripped supply for these metals and global warehoused stocks have been falling to alarming lows in order to feed the appetite of the global economy. Economics, as it should be, is the major driver of this recent bull run."

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