By Frank Jack Daniel and Monica Medel
MEXICO CITY (Reuters) - Vibrant Asian demand and growth in rich countries has created a spectacular metals boom that is here to stay for at least two more years, Mexican silver miner Penoles' veteran chief executive said.
Jaime Lomelin told Reuters the current outlook was the most positive he has seen in 35 years with Penoles, the world's No. 1 refined silver producer.
"Very rarely have we seen the stars aligned as they are now," he said in an interview late on Monday at the Reuters Latin American Investment Summit in Mexico City.
Lomelin raised his price outlook for silver in 2006 to about $10 an ounce, up from $9 an ounce he predicted just two months ago.
Silver, gold and copper all set record prices on Monday, with silver touching a 22-year high based partly on the imminent approval of a new U.S. investment tool backed by the metal.
Underpinning the dizzying gains are sustained rises in demand for minerals from developing economies like China and India, driven by a hunger for cheap consumer goods in industrialized countries.
"Our perception is that there are not enough metals for such growth," Lomelin said. "There is explosive development in China and very strong growth in India. What people want is to have a car, a house. How many kilos of copper is in a car? How many kilos of zinc?"
Although mining companies are now scrambling to find big new reserves, under-investment during a long slump in demand, which brought weak prices, means it could be years before many major projects come on line. Continued...
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