What to Do in Resources

Article Excerpt

When the Resources sector is booming, as it is now, it’s easy to think we’ve entered a new era of eversoaring prices. That’s a common belief today, due to growing demand for resources in China, India and other developing countries. However, as the saying goes, “The best cure for high prices is high prices.” For instance, copper prices have risen nearly five-fold from lows of a few years ago. You can bet that copper users are looking for ways to use less copper, with product re-design or by switching to cheaper materials. Meanwhile, copper producers will cast about for new ore sources, and recyclers are scrambling to expand. You can say something like that about virtually every commodity. All commodity prices are likely to be much higher in this decade than in the past. But prices will fluctuate widely, as always. The Resources & Commodities sector is going to maintain its well-earned reputation as one of the most volatile and riskiest of the five…

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