Coiling spring
The China demand really has to do with global growth patterns. Simply, are the economies of North America, Euro Zone and Far East gonna continue to grow beyond the ability of supply. For example,if US housing starts slow down then that would reduce demand for copper but does that offset the growth in the East? Also, with all the condos going up and all the use of zinc in stainless and the "war economy" of Iraq pehaps we can expect HBM to find some support around here. Who knows...I get nervous but have been with this stock for a while ($10) and I like the idea of hard assets that are undervalued, even if the commodities back off 25%. What will happen with the USD? If the US has stopped raising rates or no longer has the capacity to raise rates without killing off growth, or the US has to continue to finance the war(s) they are in, then the USD will resume its downward decline. Granted they are still the leading economy and currency but with all this geopolitical noise is it not unreasonable to expect some move towards base materials as China emerges and takes its place as a new economic, global powerhouse. Follow what the Chinese are doing and you will get a picture of what things will look like 5 years from now.