China's planned economy will support commodities prices for decade to come.

Jim has nailed it:


"Important Dollar Considerations That Have To Be Added To The Formula Author: Jim Sinclair

Dear CIGAs,
Westerners do not understand China plans its economic future decades ahead, making all preparations for it. No Western country has any economic plan other than short term political rhetoric.
Since Western analysts have no clue about the depth of economic planning, they predict the consumption of China in raw material to be a product of China’s prior month's economic figures. Nothing could be further from the truth.
Diversification out of the US dollar by investment in raw material is part of the long term Chinese economic plan.
Since the Bank of China does not hold paper dollars, but rather US Treasury securities, such diversification will require bond liquidation.
As the dollars created by the sale of US Treasury securities are invested in raw material production, those dollars enter the international liquidity pool.
This type of diversification does avoid instant destabilization of the US dollar but clearly puts long term downward pressure on it.
It is well known that China officially has quiet interest in many of corporations, especially those operating internationally.
One only needs to follow the money to prove the above dollar negative long term thesis."

Commodities, Gold and Silver plays:

http://sufiy.blogspot.com/2007/08/silver-seven-juniors-from-summer-2006.html