Surprise, Surprise-energy, Precious Metals and Base Metals Will be in Demand in the Coming Years

Today, Morgan Stanley put out a number of comprehensive analyses discussing the demand for commodities and the outlook for some mining companies. In short, they remain bullish on many, but not all base metals and energy commodities, and the main reason is demand from China.

Those of you who have followed us for the last several years should know that this is an old theme for us, but one which is gaining more and more currency with investors globally. When big firms with a global following are pushing 75 page research reports to their wealthy clients about the demand from China and India for base metals and energy, you know a lot of buying will follow in these areas.

By the way, they raised their price objective for gold and the platinum group metals for 2007 and 2008 as well. We believe a large part of the increased demand for precious metals will come from the increased purchases by Chinese and other Asians [especially Indians] as they grow in wealth.

All of this continues to argue for a long-term increase in the huge quantity of assets, which will be invested in these areas in coming years. By these areas, we mean precious metals, energy and base metals.

Once the freight train of big money gets rolling into an investment theme, it is hard to stop.

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Mr. Guild founded Guild Investment Management in 1971. Prior to founding the company he was an analyst at a bank and a hedge fund. Mr. Guild is a recognized expert in the areas of international investing and economics. He has been a writer and speaker on economic issues for 30 plus years and has been widely quoted in the world media. He holds a BA in economics and an MBA with highest honors.

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