Author, Andrew Sheldon
Global Mining Investing is a reference eBook to teach investors how to think and act as investors with a underlying theme of managing risk. The book touches on a huge amount of content which heavily relies on knowledge that can only be obtained through experience...The text was engaging, as I knew the valuable outcome was to be a better thinker and investor.
While some books (such as Coulson’s An Insider’s Guide to the Mining Sector) focus on one particular commodity this book (Global Mining Investing) attempts (and does well) to cover all types of mining and commodities.
Monday, January 28, 2008
1. The almost universal availability of substitutes - If any product becomes scarce and prices rise, buyers are inclined to buy a similar product that serves the same purchase.
2. The pricing mechanism - Price rises in any single product will rise and in the process discourage consumption, or at least defer it until prices fall, or the person's capacity to buy improves through their increasing income or debt raising capacity.
A global economy offers even greater capacity to reduce inflation because there is greater possibility of substitution or competition, but it does have to overcome the added transport and marketing cost of selling that output, and thats a long-run commercial decision.
The 'demand-based inflation' enthusiasts would have you believe that greater wealth creation is creating that demand across the whole economy. Some dont even bother to explain it - its just there 'suddenly'. But thats nonsense because the increase in wealth is due to expansion of economic output. It also does not account for the 'late' arrival of inflation. We have had 13 years of low inflation despite strong economic development. If you think that is a good thing consider that during the Industrial Revolution, under a gold-standard, there was no inflation. Price variable was essentially stable.
The reality though is that we have had inflation over the last 18-odd years, its just that the CPI is designed not to measure it. This is because the CPI measures only the increase in prices in products that are important to the poor. But the inflationary phenomena is a monetary phenomena caused by excess supply of money relative to the amount of goods & services in production. Now since the wealthy hold the bulk of the money and people want to make more, the bulk of this money flows into business & personal investments such as factories, property and stocks, not into household consumption. The implication is that this money is in a sense sterilising the inflation such that price rises dont flow through to basic goods and services. At some point asset prices become overpriced, and are sold down. This process will eventually lead to bankruptcies, whether because interest rates are raised to address inflation or just because of default because the factory sales fell, or the home owner lost their job.
Andrew Sheldon www.sheldonthinks.com
You can view foreclosed properties listed for as little as $US10,000 in Japan thanks to depopulation and a culture that is geared towards working for the state. I bought foreclosed properties in Japan and now I reveal all in our expanded 350+page report. The information you need to know, strategies to apply, where to get help, and the tools to use. We even help you avoid the tsunami and nuclear risks since I was a geologist/mining finance analyst in a past life. Check out the "feedback" in our blog for stories of success by customers of our previous reports.
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Buying Philippines Property 2010
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MY ADVICE is (i) look at a range of market indices and decide upon what level of correction would give you the justification you need to get in & out of the market. It might be a 5-10% retracement or a break of trend. (ii) Diversify if you dont have an intimate knowledge of the company or management. More than 30% in one company is aggressive.
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