Despite their recent underperformance, David H. Smith, Senior Analyst with The Morgan Report, remains bullish on precious metals, especially silver and palladium, as the "love trade" heats up and the global economy adds more debt to the system.
The main point of contention is the fact that mining companies believe that once they reached a 26% black ownership, they effectively complied, no matter where the percentage is at now.
A chart by the Wall Street Journal shows that capital expenditures by the big oil companies are exceeding cash flow at a higher rate than the major miners.
Vale's Murilo Ferreira has been nominated as Petrobras' next board chairman, while the company still scrambles to deal with the fallout from a vast corruption scandal.