Commodities: Fasten Your Seatbelts

[lektrode]

The Captain has Turned on the Fasten Your Seatbelts Signs

everything seems to have hopped on the rollercoaster today - E tickets, anyone?

is this event (the tsunami/japan) going to start the volitility that EJ spoke of earlier in the year - or is this a black swan?

http://www.kitco.com/reports/KitcoNe...s20110315.html
TD Securities Looks For Industrial Commodities To Rally Again Later In 2011

Daily Silver Chart

15 March 2011, 9:03 a.m. By Kitco News http://www.kitco.com/

(Kitco News) -- TD Securities Commodity Research says it expects industrial commodities to rally again later in 2011 and “perform well over the longer term,” despite recent weakness fueled by factors such as the earthquake in Japan, oil-price shock and broad concerns about global economic growth. For the longer term, analyst cites expectations for global growth, accommodative monetary policy and supply constraints. “Silver, palladium, copper, and petroleum products are TD Securities’ favorite commodity picks, with recovering demand and a significant tightening in physical fundamentals as the most important drivers for the ranking,” says a report. “Petroleum products are also expected to outperform the broad commodity complex due to improving demand prospects and a risk premium associated with the Middle East and North Africa (MENA) oil supply concerns.” In its long-term assessment, TD Securities also describes the outlook for gold favorably due to the MENA instability, quantitative easing in the U.S., Japanese liquidity injections, central-banking buying, U.S. and European sovereign-debt concerns, inflation and improving fabrication-demand prospects.

[BiscayneSunrise]

Re: Commodities: Fasten Your Seatbelts

With gold down 2% today it is interesting to note that despite everything we know about sovereign debt and fiat currencies, people still rush to the dollar for safe haven.

To me, that means, we are nowhere near a psychological top for gold.

[jk]

Re: Commodities: Fasten Your Seatbelts

how much copper will be used to wire all the replacement housing that will be built? just askin'.

and what do you suppose might be done to replace the electrical supply that japan has lost?

i just don't see how this is a deflationary event. i suppose all those displaced people won't be buying new cars soon. but otoh, maybe their old cars have been destroyed. and what was saved will be spent more quickly than planned.

[Mega]

Re: Commodities: Fasten Your Seatbelts

Ageed JK
This is just a "hicup" but it might be some years before we free.
Mike