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الأربعاء، 13 يونيو 2012

Rising commodity prices causing new turmoil through the mining sector

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Rising Commodity Prices Causing New Turmoil Through The Mining Sector


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The Gold and Silver Index (XAU) is holding steady above 120, having reached a high above 156 in January, a level it had not seen since September 18, 1987. The spot uranium price is higher than its been since January 1980. Crude oil? Filling up your gas tank should remind you that oil prices are still painfully high. So all of this must mean mining companies are thrilled with their good fortune? WRONG! Theres a snowballing crisis in the mining sector, which has been kept off...


investing, stock market, commodities, energy, utilities, stock tips, stock trading, uranium, mining


The Gold and Silver Index (XAU) is holding steady above 120, having reached a high above 156 in January, a level it had not seen since September 18, 1987. The spot uranium price is higher than its been since January 1980. Crude oil? Filling up your gas tank should remind you that oil prices are still painfully high. So all of this must mean mining companies are thrilled with their good fortune? WRONG! Theres a snowballing crisis in the mining sector, which has been kept off the typical investors radar screen. This new emergency could drive commodity prices to even higher levels over the coming months, and possibly until the end of the decade.

The two-decade long bear market drove many geologists out of the mining sector. Drilling companies went bankrupt. Even with the recent explosion of activity in the mining sector, exploration in the sector is less than one-third of its peak in 1981, when more than 5,500 drill rigs were running.

The mining sectors labor and drill rig shortage has gone past the we

 



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