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<p>[QUOTE=&quot;gxseries, post: 382555, member: 4373&quot;]I kind of disagree. Stock market has now become a game for investors and with media hype-up, any news can erratically change the price. Oil price in particular is the WORST example where investors decide to muck around and ruin lots of people&#039;s lives. There are some commodities that one should NEVER touch. Mining companies, yes, but commodities? No. I was furious last year when an investor jacked up the price to 100usd/barrel, claiming that that is how oil prices should be at when it should have been at 80usd ish. Ever since then, it never dropped due to that panic event. Too much panic and too much hoarding. </p><p><br /></p><p>I kind of disagree that mining prices will keep on increasing due to oil prices. Part of the issue is that from 2003, there was a large surge in demand from China but exploration just didn&#039;t keep up because metal prices were just too low. There was no incentive for major companies to explore as these are expensive and most companies were cutting corners for survival. As a result of that, what used to be a few weeks of stockpile of various metals and minerals result to less than a week in some cases simply because the supply can&#039;t keep up. Any event in a mine can result to a dramatic change in supply and last year, South Africa&#039;s production level is a good example.</p><p><br /></p><p>It&#039;s somewhat true that because fuel is used in some parts of the mine, i.e. transporting blasted rocks, production cost will rise. But dramatically? I think it&#039;s just only half of the problem. </p><p><br /></p><p>Now that metal prices are sky rocket high, there are already various explorations for different metals, thanks to the large amount of investments. Development might take a few more years but there are already a few really large mines scheduled to be ready from this year to 2012. For good grief, how much higher do you think metal prices will be? There are a few exceptions to this but most metal prices should drop.[/QUOTE]</p><p><br /></p>

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