Metal & Macro Musings

Peak Gold – and we mean price

  • Zinc and lead have been rallying slowly but surely with both breaking through the 95 cts per lb level in recent weeks
  • The Euro crisis is losing steam and the currency is stabilized with the focus now turning back to the lack luster US economy.  This has dampened inflation fears
  • Copper seems to be rangebound with the Chinese unwilling to see it break much above the $3 perlb level
  • The Australian resource tax proposal has been watered down after the fall of the Australian PM. Now an election could sweep out the government and remove even the diluted proposal.
  • The announcement by the Chinese that 2010 export quotas for REE would be 40% lower than 2009 electrified the space.  The quotas for 2010 total 30,250 t REO compared with ROW forecast demand of 50-55,000 t.  Dudley kingsnorth estimates total ROW production capacity is currently 10-12,000 t at best, which indicates a shortfall this year 10-15, 000t

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