This is from Jim Sinclar page and is important for all that are investing in commodities, now is good time to buy KWG at lower prices and go long, KWG is in strong hands and there will be some surprises this year for sure, doesn't matter about short term fluctuation.

INFLATION WILL ARRIVE IN LATE 2010 AND 2011

We do not see rapidly rising inflation for the next few months, and as a result many people will forget about the longer term problem that we expect will rise in late 2010 and in 2011.

There are two reasons why we believe that inflation will rise.

Reason One: Corporations are cutting costs and in doing so they are limiting the supply of certain goods and services that are offered for sale. This has the effect of causing prices for these same goods and services to rise.

Reason Two: Government stimulus and liquidity pumping will cause capital to flow into commodities, which are rising in value. Oil, gold, and food should attract this liquidity. This liquidity injection combined with foreign demand will cause an increase in prices for food and raw materials. Higher raw materials prices will gradually be passed on to prices at the retail level, causing inflation at both wholesale and retail levels to rise in 2011.

By 2011, we may be experiencing a world where supply of goods is decreasing, while demand is increasing. This combination will lead to higher prices.