Posted on 05/20/2010 6:21:09 AM PDT by blam
12 Key Charts That Show The Savage Beating In The Commodities World
Joe Weisenthal
May. 20, 2010, 9:07 AM
Image: Stockcharts.com
One of the major themes we've witnessed in the recent selloff is the big attitude change towards commodities.
Basically, they've been hammered for a few reasons:
"risk aversion" Actual possible slowing of Chinese demand. The mining supertax. Australia has announced a big tax, and there's talk that other countries will follow. This Sydney Morning Herald article talks about mining supertax contagion. Peru and Chile may be the next to tax miners big. So, we've rounded up a quick look at some charts that tell the story.
Click here to see the charts >
[snip]
(Excerpt) Read more at businessinsider.com ...
>> You Should Be Scared About The Commodities Cycle
Only if you’re long commodities. :-)
If you’re short, the cycle is your buddy.
Very interesting. The last time I saw something like this was back in the summer of 2008 when oil was over $140/barrel and a friend of mine who is a very astute private equity fund manager was telling me that the price of oil was about to decline considerably.
hmmm...this sounds familiar for some reason...
I do believe that a huge tax on mining is bad for miners but good for the gold price. If you want less of something, tax it.
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