Yet another ingredient in the SGX pie.We have the leadership. We believe that we have much more of the 'goods' in the ground. Below is portion of an article of the type that you have seen before and without a doubt it also has a bearing for what we are about to see happen in SGX.
Since this is a spec play could something go wrong? Of course BUT there are a growing number of 'solid double digit' companies that have gone under or are trading at a fraction of what they use to. You know the type of companies where mom and dad thought their retirement funds were safe. At least we know from the get-go that SGX is a speculative possibility/probability.
All the best,
Jerry Francis
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Taken from howestreet.com
The Biggest Boom You'll Ever See!
by Larry Edelson
Gold is at 27-year highs, about to blast off even higher … and soar to well over $1,000 an ounce.
Oil is also at new record highs … trading over $85 a barrel … on its way to $120 … then, even higher.
The price of wheat just reached as high as nearly $10 a bushel … the highest price ever … up 103% in just six months.
In fact, the prices of dozens of natural resources are soaring like never before. So today, I want to answer …
The Three Key Questions You Must
Ask About the Natural Resources Boom
First, what's driving natural resources higher?
My answer: There are two very important forces at work:
A. Three BILLION people in Asia are catapulting themselves into the 21st century, with newly awakened needs and wants … with knowledge and awareness of the rest of the world like they never had before (courtesy of the Internet and e-mail) …
And with governments now finally acknowledging that socialism and communism can never survive in a world as open and flat as we have today.
B. The plunging dollar. Since almost all natural resources are traded globally in dollars, as the dollar falls in value, natural resource prices must rise to compensate. This is effectively deflation in the dollar, and inflation in natural resource prices.
Combine the above two forces — and you have the most potent combination for rising natural resource prices that history has ever seen.
Second, how much longer can this boom last?
My answer: The natural resource boom will continue for YEARS!
Some analysts expect it to continue for up to 20 more years. My cycle studies and indicators are not that optimistic, but they do strongly suggest that this natural resource boom will continue until 2011. In other words, you have at least FOUR MORE YEARS to capitalize on these trends.
Third, how much higher can prices go?
My answer: Prices can go much, MUCH higher.
To give you an idea of the big picture, take a look at this chart of the Commodities Research Bureau Index (CRB), which tracks a basket of 16 of the world's most traded commodities. This is what the index looks like once it's been adjusted to account for the decline in the purchasing power of the dollar over the last 30 years …
As you can see, the inflation-adjusted high in the CRB Index occurred back in 1973 at 1,047 in today's dollars. Now, the index is trading around just 450!
Bottom line: The CRB Index is still below HALF its inflation-adjusted peak! So prices could easily DOUBLE from where they are now.
And that's a broad index. It does not show you how much higher specific natural resources can go. For example, gold would have to TRIPLE to reach its inflation-adjusted high. Coffee would have to soar 800%!
It might sound crazy, but it all comes down to supply and demand. And demand, as I mentioned previously, is rising to one record high after another. So much so that …
One Planet's Worth of Natural
Resources Is No Longer Enough!
In fact, the human race is gobbling up the earth's resources faster than ever before. The planet is quickly going into an ecological deficit.
According to recent calculations from the Global Footprint Network, a foundation whose mission is monitoring the world's natural resources, our consumption of Mother Nature's offerings soared from half the planet's total capacity in 1961 to over 1.3 planet Earths in 2007!
In other words, the world is consuming 30% more in natural resources than Mother Earth can pony up in a year.