IRC's Doug Silver Says Commodities Supercycle Has Not Ended, Metal Prices Are in Correction
Source: Mineweb (8/22/08)
Respected strategic mining advisor Doug Silver, Chairman and CEO of Colorado-based International Royalty Corporation (IRC), told exploration professionals yesterday he expects the current commodities correction to last another three to four months.
Stressing that he strongly feels that commodities are in a period of correction, Silver told Geological Society of Nevada members that commodities cycles are more connected to global issues, not the state of the U.S. housing industry.
Since Silver believes that the growth of the global economy continues to be strong, he urges mining professionals not to worry about an end to the current commodities supercycle.
Silver asserted no evidence exists that global growth has, in fact, stopped or declined. In fact, he contends that the GDP growth of a number of developing nations is a long-term trend that cannot be easily reversed by a slowing U.S. economy. For instance, Silver noted that the international economic and financial information company Global Insights expects China to control 17% of U.S. manufacturing rnext year, and is expected for the first time to actually surpass the U.S. manufacturing sector.