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March 1, 2010 Dear Friend,
The Chilean earthquake missed
copper producing regions in most cases by well over 1,000 km,
and we view the $0.05 per lb plus rally on March 1st as a
profit-taking opportunity. With combined exchange inventories
almost up to 800,000 tonnes, the copper market needs an
earthquake.
Greek Deputy Prime Minister
Theodoros Pangelos complained that German reparations after WW
II were not large enough, signalling Greek intransience that it
"deserves" large aid with no strings attached. We expect Greece
and perhaps a few other nations to withdraw from the euro to
establish deep devaluations suited to their particular
unfavorable circumstances. We think the smaller euro region is
bullish for gold. We expect the euro to strengthen if the ECB
renounces aid to weak states, but that the "big picture"
benefits gold as it erodes the euro as a possible storage
repository for large Chinese or unwanted U.S. dollar hoards.
Please note our March 24-25,
2010 metals and mining conference in New York. We appreciate
prompt RSVP and tabulating one-on-one meeting requests.
Faithfully,
John C. Tumazos
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Copyright © 2008 John Tumazos Very Independent Research,
LLC
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