TRF 0.00% 1.9¢ trafford resources limited

china leads the way!!, page-2

  1. 1,482 Posts.
    You are correct in what you are saying Siamese parrot. Many experts are predicting an Asian lead commodity boom in 2010. The prediction by many financial analysts (many stories in financial reports, the media etc) is that China and India will continue to expand solidly in 2010, which will translate into an increase in demand for our commodities.

    Notably its not just the expansion in China and India but also the solid growth rates which are predicted for numerous economies across Asia and the corresponding expansion of the Asian middle class and high demand for consumer durables.

    The big question is whether or not, the commodity supply can keep pace with the demand?

    This could catch us all by surprise, and its great that IFE are speeding up their project to become operational and exporting ore by the end of the year?

    A pointed raise in the commodity prices or possibly a new boom, will lead to higher investment in the resources sector and greater demand for services etc.

    Risks involved are believed to be a possible revival of inflation and further appreciation of the Australian dollar? This will certainly be the case for the US dollar (a falling currency due to inflation) given their massive debt levels and their continued borrowing of money for Government spending and borrowing of money to service old debts in conjunction with the devaluation of the US dollar.

    This will be due to the US government printing and minting more and more money that will evidently lead to an eventual devalued US currency and higher gold price. This is the way economics work, this will happen, the writing is on the wall.

    The real risk for Australian companies is said to be that the Australian dollar will hover well above 80 US cents or 85 US cents rather than returning to the long-term average of 72 US cents. So obviously the higher Australian dollar may affect some our exports.

    However, all of the above points towards an excellent and exiting 2010 for Trafford Resources and all of us shareholders. We will all become wealthier in 2010 simply by being a part of this exiting, profitable and forward looking company.

 
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