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Veteran mining analyst Peter Major joins BizNews editor-at-large Jackie Cameron talking all things commodities and resource shares. Peter has covered commodity counters on the local bourse for many years, having seen many super-cycles play out. Peter is bearish resources stocks, explaining that the enthusiasm in the commodity prices are at unexplainable levels. – Justin Rowe-Roberts
Peter Major on whether it’s the right time to buy Kumba:
Boy, Major thinks it’s time to sell cause he thinks these are ‘Looney Tunes’ iron ore prices. And that’s what moves Kumba. You barely go back a year from now, I don’t even think the iron ore price was $90 a tonne. And we thought $90 was incredibly high. Their working costs are probably $40 a tonne. The rest of the world’s working cost is around $25 – $30 a tonne. So here’s the second most common metal in the world and everyone can mine profitably below $50 a tonne and yet the iron ore price has escalated to $210 a tonne. So it just doesn’t make any sense to me.
On the gold price and gold stocks:
I don’t know, I just don’t. I thought that some of this negatively towards bitcoin was going to help gold but it hasn’t seem too. People used to say that gold is a great counter investment or diversified investment because it’s not linked to anything else and that is actually correct more often than we want. Gold doesn’t seem to be linked to bitcoin in any way. I can’t see gold coming down much further unless the other commodity prices continue to fall.
On whether he consider bitcoin in his portfolio:
Never – not even if I’m dead. That is too foreign, too inexplicable and too untrustworthy for me. I don’t know who invented it, I don’t know where it comes from, it’s a coin for the masses. As long as the masses want it, it seems to go up and as soon as the masses don’t want it, boy does it fall. And I don’t my future relying on the masses.
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