The iron ore price is plummeting – is it time to sell BHP and RIO?

The iron ore price is plummeting – is it time to sell BHP and RIO?

The price of iron ore, which happens to be Australia’s biggest export (and the discussion about what this might mean for the budget deficit is a story for another day), last night reached a price of $US83.20 per tonne, a new five-year low. It is already down 40% on last year’s average and many analysts predict further falls to come.

Have the good times for Australian miners finally come to an end and should we now be selling what have always been widely considered investments for every balanced Australian portfolio?

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First we need to examine what is causing the falls in the iron ore price. Th...

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