IMF: Australia Recovery on Track, Led by Mining

Source: Reuters, Lesley Wroughton and Neil Stempleman (10/28/10)

"Mining boom was likely to continue, given demand from Asian economies."

Australia may need to tighten monetary policy further to contain inflation pressures being generated by a mining boom, the IMF said on Thursday.

The IMF's annual review of Australia's economy said the recovery was on track, led by strong demand for its commodities from China and India.

It said gross domestic product growth was projected to reach 3% in 2010 and 3.5% next year. Staff assessments estimated that the Australian dollar AUD=D4 may be overvalued by somewhere between 5 to 15%.

Authorities agreed in discussions that if further inflation pressures emerged, they will need to raise rates further.

The IMF said private investment in mining and commodity exports had overtaken public demand as the main driver of growth in Australia. The mining boom was likely to be long lasting, it said, given demand by for commodities from fast-growing Asian economies.

The IMF said the authorities agreed in discussions that the commodities boom will test the economy's capacity and fiscal policy had so far played a key role in managing the boom.

The IMF said it approved of the pace at which the central bank was unwinding monetary stimulus.

"Should the global recovery stall, the (central bank) has scope to cut the policy rate," the IMP said added.

The Reserve Bank of Australia has raised the policy rate to 4.5% in six steps, the most recent in May.

The fund said it also supported government plans to return to a budget surplus of 0.2% of GDP by 2012/13. It noted that a larger surplus than in the past may help avoid potential overheating and offer protection from sharp falls in commodity prices.

The IMF said a fall in prices for houses, which could be somewhat overvalued, according to staff assessments, could affect private consumption and slow the recovery in Australia.

Announcing Streetwise Live! Events
Source: Streetwise Reports (07/13/2020)

Streetwise Reports is offering 100 investors—at no charge—the opportunity to meet via Zoom with executives of precious metals companies as they discuss recent developments at their companies and upcoming catalysts.

"China's export quota could be opportunity for Canadian miners"

Latin America: Six Gold Juniors Amass 100M+ Ounces
Source: Marc Davis, BNW News (05/25/2010)

Latin America, the world's last great mineral frontier for prolific gold discoveries, is proving a godsend for some lucky investors.

Mexico: Gold's Next Powerhouse Player
Source: Marc Davis, BNW News (11/03/2009)

As the world's key gold producing nations struggle mostly in vain to replenish dwindling below-ground supplies, Mexico is bucking the trend in a big way.

Where Have All the Gold Mines Gone?
Source: Brent Cook, Exploration Insights (04/14/2009)

Given the declining global gold production, mining companies’ demand for reserve replacement and the acute dearth of new gold discoveries, there is no doubt that real economic discoveries will be exceptionally valuable. . .the opportunity for stellar profits is the best it has probably ever been. Identifying the few successes, however, will require vigilant and constant technical assessment of geology and drill results, always with an eye to mine economics.

Congo Completes Mining Review, Says Majors Quit Talks
Source: Reuters (12/20/2008)

"Review process is extended an additional 45 days to allow six companies to return to the negotiating table for direct talks with government ministers."

I haven’t spoken to my old mining stock friend, noted and universally respected gold stock guru, Bob Bishop, about Rare Element in a year, but I hear he is still a supporter and very large shareholder. I don’t believe he will hold it against me to remind you that this was one of his favorite holdings when he left the newsletter writing business. . .

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Source: www.financialinsights.com (06/03/2005)

Dr. Richard S. Appel, author of Financial Insights, first became bullish on uranium in mid-2003, when it appeared obvious that its supply versus demand equation was fated to seriously drive higher its price. Since then, a series of events in the uranium industry has led Appel to believe that uranium prices will reach never before seen levels.

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