With the demand coming from china and India only set to increases irrespective of the world economy slow down. You say why.
China is not exactly buying all this steal and IO to build pc cases and buildings or bridges out of it, its part of it but you can bet your bottom dollar that the %90 of the IO is going into building there trillion dollar per annum navy build up. Did you know that china has a 4 to 5 time bigger budget to build up its navy fleet than US. I don’t believe that china is intending to enter any war anytime soon, what they are interested in is to protect there shipping lines in the open ocean. You see the oil gets into china via 2 lines, one pipeline throw the north, and the other is via the sea. Now US have the biggest navy on the water and has ships ready to go at all over the world, and china knows that. US can cut the shipping line to china should there be a reason to do so, and china would not be able to retaliate. But wait and see what is coming out of china over the next few years. When china has all its new ships and submarines out in the open water, then US will only think twice before it decides to flex its mussels to reduce or stop the oil flow to china. You see there is war going on out there and it’s over the black gold. US knows that china needs to get as much as it can to fuel it growth, that’s why the price is high, but china is all over the world and buying up oil rights in Africa, Middle east, South America, Venezuela, IRAN.
That’s why I see the price of IO and steal going much higher and the demand not slowing down. China is not about cheap products and goods. They are building the war machine and you can t do that with concrete. Now sit on IO stocks, as well as Gold stocks and look back in 5 years time and you see what will happen.
Now you don’t hear this on mainstream media do you.
ORP Price at posting:
0.0¢ Sentiment: ST Buy Disclosure: Held