SPDR S&P Metals and Mining (ETF) (AMEX:XME)

Increasing demand worldwide for base and industrial metals

Metals

Metals are a finite natural resource so demand will only ever go up.

Nice inflation hedge with solid underlying company stocks

Strong world demand.

Generally bearish on commodities. I expect the US Gov't won't be able to increase the money supply adequately to account for the tremendous loss of credit-based purchasing power. A reduction in the real money supply (including credit) will reduce economic demand and drive prices down. Commodities should correlate more with the dropping prices than companies of the S&P who have more to offer than just a particular asset. This should equal points in CAPS.

Hello reflation.

Metals are going up as infrastructure rebuild occurs and countries put money into commodities and out of bonds. Dollar declines will bring flight back to these investments.

Cipostripes / Jesusfreakinco / Cuchulainn1 metals ETF pick.

The media focus in the USA has shifted: Inflation, not a slowdown is the big danger. Brazil, Turkey and other central banks appear to be firming up their cost of cash. That will ultimately make vital commodities look more expensive to the big buyers, and despite the best efforts of the businesses that expend commodities to keep the cost increases from trickling down to consumers, I believe the dam will burst (and I think Ben does, too). Inflation could induce a feeding frenzy, as buyers stock up before prices go up higher.

What is a Fool to do under these circumstances? I'll stick with commodities stocks, despite the recent run up, because they will clean up while the whole world burns.

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sd

Precious metals are going to mean something to the economy.

Good time to pick it up. May need watching after a year or so to see where its headed.

This stock is making a move in the market today at the start and can make you some money but it needs to keep up with the other money companies.

In a recession the price of metals tends to rise

Demand.

Steel ETF. Clearly, this stands to continue to grow over time. After my family was involved in the decline of the steel industry in Chicago in the early-to-mid 80's, I've taken a particular interest in the manner in which demand has been met. As commercial growth rises in foreign segments, production capacity of steel will have to rise to meet the requirements. A good, solid buy!

World Demand Increases

Metels are going to go higher. Jump on board.