Resources boom to last 5yrs

As an adviser I get to speak to Hudson members all over Australia. This provides some pretty good feedback regarding the strength of our economy and where the growth sectors are. This has lead me to the conclusion that the resources boom will continue for at least the next five years. Most Hudson members in mining are indicating that their forward orders are full at least until the end of the decade.

Australia is No2 in the world in regards to gold production. Australia moved to second place in 2003, overtaking the US, but is still about 100 tonnes shy of leader South Africa which, despite a massive drop in production because of a rising rand, has managed to stay well above the rest of the pack. The modernisation of China is one of the biggest factors driving the base metals and bulk commodities industries. On the down side, there are growing concerns that Australia is not doing enough exploration to make the most of that outlook. There are nerves about labour shortages and rising costs, and how long Australia could keep its reputation for being able to punch above its weight in production terms.

The Colonial First State Global Resource Share Fund is the perfect way for smaller investors has exposure to this sector of the market. Contact your Hudson Financial Adviser for more information.

article written by Alistair Milne