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Featured on the Daily Korelin Economics Report: Lawrence Raulston Gives Evidence to the Growing Strength of Resource StocksAlexander B.
Korelin Over the years, many pundits have said that a growing number of people in a market is evidence of a top. Lawrence Raulston says that in the current resource market that is definitely not the case. The resource industry today is attracting a large and growing number of investors. Lawrence brought out the fact that the recent Cambridge House Investment Conference, held in Vancouver B.C., attracted over 8,000 investors, many of them traveling to the Conference from outside Canada. This made it the largest gathering of resource investor ever to occur in the world. Shortly after the Cambridge House event, gold and silver both began to appreciate in value. Yesterday, January 31st, gold was selling above US$350/ounce [Editor's note: [$650] Silly typo Al. Don't let this happen again] and silver was selling above US$13.50/ounce. Lawrence told us that up until very recently the precious and base metals markets were driven largely by institutional investors. He believes that, "the record attendance at the Vancouver conference is an indicator that the retail investor is now becoming more involved." Why are retail investors getting more involved? According to Lawrence they are "simply becoming aware of the imbalance between the supply and demand occurring in both the precious and base metal sectors." He points to the increasing demand for base metals coming out of the Far East and the continued increase in demand for precious metals resulting from the performance of the US dollar. Lawrence believes, as I do, that the best way for investors to participate in this market is through investment in the common stocks of the companies working here. When gold was selling for $254/ounce a number of years ago, we made the decision to switch the emphasis of our radio program from general business topics to topics associated with asset based investing. We believed at the time that this was the right thing to do. Hindsight is always 20 - 20 and fortunately we were correct. I believe that a similar situation exists today and that this year will be the start of a very strong market in the resource industry. We have come to this conclusion because of the conversations that we have everyday on our program with experts like Lawrence Raulston. To listen to everything that Lawrence had to say on this and other issues simply go to our website, www.kereport.com and click on his picture. Feb 1, 2007 |
