O.F.

It is my thinking that even though base metals demand will be good due to the developing countries for the forseable future this will not be there only reason to invest in them. One of the roles of money is to act as a store of value and base metals certainly can act in this regards. Afterall that is why we have copper pennies and what use to be nickels and other metalic change.

I don't know what the exact metals they put into the change is today but I am sure it is not what it used to be due to the amount of metal in the coin being more valuable then its face value.

Therefore even though demand for the industrial uses of certain metals may fall that does not necessarily mean there price will when inflation really kicks in. Afterall what would you rather hold, a pile of paper money that is steadily loosing purchasing power and could possibly become defunct or a pile of raw materials that you know someday someone will need and that you can exchange for whatever currency will be in effect at that time.

When people loose faith in the system they will be looking for places to protect there wealth from inflation and hard assets has traditionally served very well in this regards.

Regards,

F.F.