Red-Hot Resources

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Thursday, March 08, 2007

Interesting Resource Headlines This Morning

Is is just me, or is the news on commodities especially bullish lately? And remember, this comes on the heels of doom-and-gloom forecasts made just last week! Check out some of these headlines...

Gold Climbs a Third Day as Dollar's Gain Spurs Investor Demand
``We're all trading the dollar-yen,'' said John Reade, head of metals strategy at UBS Investment Bank in London. ``It shows people are more friendly to riskier assets, and therefore people at the margin are buying a little bit of gold.''

Nickel Climbs to Record on Shortage Outlook; Tin, Copper Gain
Nickel advanced to a record for a second day, leading gains in London, on expectations dwindling stockpiles will create a second year of shortages. Copper and tin rose for a third day.
Increasing demand for industrial metals has left mining companies struggling to fill a supply gap, causing inventories to shrink. Nickel stockpiles monitored by the London Metal Exchange have plunged 90 percent in the past year and those of tin have fallen 34 percent.

Chinese Demand May Boost Iron Prices, Citigroup Says, Reversing Prediction
Iron ore contract prices may rise 7 percent next year, rather than decline as expected, due to stronger-than-expected Chinese demand, said Citigroup Inc. Chinese steelmakers, the world's largest producers, may import 4.3 percent more of the steelmaking ingredient in 2007, and 7.4 percent in 2008, said Alan Heap, an analyst at the world's largest financial firm, in a March 6 report. Heap earlier predicted ore prices could fall 20 percent next year

Bank of China starts gold option trading in Jiangsu
SHANGHAI - The Bank of China will launch gold trading options this month for individual investors in Jiangsu, to aid in the control of losses due to fluctuations in the spot gold market, state-media Xinhua news agency reported on Saturday.

Australia Commodity Sales May Rise to Record on China
Commodity exports from Australia, the world's biggest shipper of coal, iron ore and wool, may rise to a record for a fourth straight year as Chinese demand pushes up prices and volumes, and agriculture recovers from a drought. Sales will reach A$148 billion ($115 billion) in the year ending June 30, 2008, the Australian Bureau of Agricultural and Resource Economics said today. Earnings will be A$138 billion this fiscal year, the Canberra-based forecaster said.

TSX Group Announces Global Mining Index
TSX Group and Standard & Poor’s, the leading global provider of independent research, ratings and indices, today announced plans to create the S&P/TSX* Global Mining Index. Similar to the S&P/TSX Global Gold Index but with a broader scope in terms of the types of miners to be included, the Global Mining Index will track leading international mining issuers. The exposure to this index will help further recognize the value of listing on Toronto Stock Exchange. In addition to bringing additional liquidity to mining listed issuers, it is expected structured products will also be created to serve investors in the markets.

Brakes on uranium price
THE uranium price is expected to peak about $US103 per pound next year as world production starts to catch up with demand. The Australian Bureau of Agricultural and Resource Economics's March quarter Australian Commodities report, released yesterday, said despite a substantial increase in global uranium mine production this year, the spot uranium price was expected to keep appreciating, averaging more than $US94.20 ($A121.69) per pound in 2007, compared with $US85 now.

XX Sean's note -- That last one is odd. All the news is bullish yet they find the most bearish slant they can. Well, we've seen tops called in the uranium market before. And the top they're calling is 21% higher than uranium is now, LOL! Let's see how it goes, shall we?

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