Ive said before that my shares in African mining companies are putting a smile on my face. Im about to buy a few more, actually, if this small rally continues.

But its not just mining stocks in Africa that are bubbling up (in many cases). Some brokers are quite bullish about commodity stocks in general. Some of them believe say that China will soon lead the renewed demand for metals and minerals.

Well, the Chinese are trying to make up for falling exports to a recession-hit world, by doing a lot of stuff on their own shores. Building things, like power stations and roads and such like. So theyll still need raw materials.

Now when the recession first started there was a falling off everywhere in demand for heavy metals and light metals and all things in between. Steel prices fell like an anvil off a cliff, for example.

But now commodity prices, like the cost of crude oil, is creeping back. Youll have noticed that it costs more to fill your tanks than a week or so ago. Also food costs which fell in supermarkets after rising fast, are now on the increase again.
Its always the same of course, when prices come down with a bump in the shops, it never lasts for very long, before the cost wheedles back up again.

The big commodity market is no different. Prices fall, but not for long. The graph of some mining companies has been as bad as the graphs of our banks in many cases. But some mining companies are now recovering faster than the banks (which wouldnt be difficult, sadly).

So I will look at mining shares. If they keep on going up, and dont see guilty of a dead cat bounce, Ill get my purse out. And Ill also favour suppliers of other raw materials. And see if it gets me anywhere. God bless.