Jim Rogers, Co-Founder of the Quantum Fund says that gold-mining stocks face 2 major headwinds - the price of gold and the presence of competition in the industry. Although the gold price is now below production cost for many mines, it will be years before this tightens supply and pushes up prices as mines are expensive to close and to re-open. Supply will eventually tighten in 2014-2015 when gold makes a nice bottom. Rogers adds that the commodities super-cycle isn't over as there are no major sources of new supply and most commodity bull markets have lasted for decades. (VIEW LINK)
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