iShares MSCI Australia Index Fund (ETF) (EWA)

marc64 (97.13) Submitted: 5/07/08 10:47 AM : Start Price: $28.30 EWA Score: -13.42

This is my theory for Australia:

The Aussies have an impressive array of precious mineral resources, such as bauxite (aluminum ore), black coal, brown coal, copper, gold, iron ore, ilmenite, lead, manganese, rare earth elements, tantalum, tin, uranium and zinc, cobalt, diamonds (both gem and industrial), lithium, phosphate, rutile, silver, tungsten, zircon, magnesite, molybdenum, nickel, niobium, platinum group metals, shale oil, and vanadium.

In addition, Australia is the world's top source for: zinc, lead, nickel, mineral sands (rutile and zircon), tantalum and uranium, and enjoys top-six status for: bauxite, black coal, brown coal, copper, gold, iron ore, ilmenite, lithium, manganese ore, niobium, silver and industrial diamond.

The biggest driver of prices for the Aussie's mineral wealth is demand from China, and the most economically important of Australia's resources due to exploding demand by China are, iron ore, coal and uranium.

What is my point? Proximity to both China and India, monetization though the increased global trade impelled by drought (which forces imports of many food products) is a prescription for a lot of cash changing hands, and that looks like growth to this EFT.

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