If there was anyone who had reason to celebrate the failed BHP takeover of Rio Tinto, it would be China, and more specifically Chinese smelters. Last February, Aluminum Corp. of China together with Alcoa, paid $14.1billion for a 12% stake in Rio-Tinto’s London listed shares. Conspiracy theorists said the move was engineered by Beijing.
The precipitous drop in commodity prices is putting companies under pressure, particularly feeling the squeeze are oil and metal mining companies. To be optimistic we must note that even though the current conditions are dire, the seeds are being sowed for another big rally in the metals.
On October 14/08, in Cupertino, California, Apple executives unveiled their redesigned line of MacBook Pro laptops, made from a solid piece of aluminum. These new laptops are more lightweight, thinner, and relatively inexpensive. Retail prices for the MacBook Pros begin at $1299 USD.
The preparations for the 2008 Summer Olympics in Beijing, China, have impacted commodity spot prices worldwide: aluminum consumption in China is at near-record heights, and continues to surge.
As with most investments there are risks and rewards associated with commodity investing, often in lock-step. Many investors hire experts to manage their money rather than doing the investigation required to increase the chances for success. But...
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