Posted on 05/08/2021 8:51:07 AM PDT by blam
On the heels of record highs in Iron Ore and Steel earlier this week, as commodity demand soars on the back of economies emerging from COVID lockdowns (demand) and various supply chain/operational issues (supply); copper prices surged to an all-time high this morning as Chinese investors unleashed fresh demand following a five-day holiday.
Source: Bloomberg
Bloomberg Intelligence strategist Mike McGlone said that “the reaction of copper to $10,000-a-ton resistance may set the inflation vs. deflation tone for years”
As Mining.com reports, the reopening of major industrial economies is sparking a surge across commodities markets from corn to lumber, with tin climbing above $30,000 a tonne for the first time since 2011 also on Thursday.
Copper has gained 28.1% since the end of last year and is up 114.9% from its 2020 low, hit in March of that year amid the global economic fallout as countries locked down their populations to contain the spread of covid-19.
“The long-term prospects for metals prices are ‘too good’ and point to higher prices in the next few years,” Commerzbank AG analyst Daniel Briesemann told Bloomberg.
“The decarbonization trends in many countries — which include switching to electric vehicles and expanding wind and solar power — are likely to generate additional demand for metals.”
(Electric vehicles use 7 times more copper than do gasoline vehicles)
Trading house Trafigura Group, Goldman Sachs, and Bank of America also expect copper to extend gains.
“Copper could spike to $13,000 a tonne in coming months, partially over low inventories,” Bank of America said.
“Copper prices will remain strong as a continued rebound in global PMIs bolstered investors’ bullish sentiment,” Citic Futures Co. said in a note.
On the supply side, Peru reported a 19% jump in March copper output, potentially offering some relief to tight global supplies, but a bill to dramatically increase taxes in Chile, the biggest copper-producing nation, threatens to curtail future output and supercharged the metal’s rally even further.
(snip)
Does this mean that my pennies will be worth something now?
Oh wait, melting this bad voodoo.
I bought Marathon Petroleum some 9 months ago and $28.00 99% sure it had (and oil stocks in general) pretty much bottomed out.
It was a no brainer as I KNEW they would go back up, it was just a matter of time.
Well, my stock topped out yesterday at a bit over $60.
Wish I had bought $100k of it rather than $30k....Oh well, can’t get greedy.
I was thinking more about Kyle Bass...I bought $1,200 in nickels myself.(ahem)
I bought lots of commodities. Copper, Aluminum, tungsten, etc. The idiotic green new deal will be shoved down our throats regardless and we taxpayers will provide trillions for connected corporations. S hole nations and China celebrate because that’s who control the minerals
Congratulations! It's not often that you can double your investment in less than one years time.
Now....
Hang on to it....you're gonna need it for food.
bmp
FYI
Don’t know about copper but I’d bet taxes will double.
Oh joy. Another summer of stories about ravaged air conditioners and other pilfered copper sources.
Just a side note. Anyone that talks about support and resistance is full of crap. This falls under the category, it works until it doesn't, and there always be a time when it doesn't. There are no consistent rules on how, when and where to draw those lines. Everyone does it different. Take a look at the chart in the article. Partially cover the right side of the chart so you don't see the most recent prices. Now draw a resistance line. Yeah, anyone can do it. Now ask yourself the question, how should trade given your line? It is what every magic you see in that bull shit line. Btw, I rely on technical analysis when I trade.
Sorry for the rant. This is just one of pet peeves when it comes to non-traders writing about investing. It is a Wall Street thing to confuse and take advantage of the masses.
In 2002, I drove to Lordsburg, NM to check out a job offer but was shocked when I drove down the main drag. All of the businesses were closed, and Lordsburg appeared to be essentially a ghost town. I later learned that the entire region is dependent on copper, for which the market at the time was bad.
Perhaps Lordsburg will become a boomtown.
As if ammunition isn’t expensive enough!
More importantly, my wife and I were at the Costco Business Center a couple weeks ago. The price of of Reese’s Big Cup Peanut Butter Cups had gone up over 50%.
Arizona: the Copper State!!!!
https://statesymbolsusa.org/symbol-official-item/arizona/minerals-rocks/copper
Only about 17% (by my count) of pennies in circulation are solid copper. The rest are the post-‘82 plated nickel.
Copper Zombie
I’m in these right now
FCX
VALE
IMPUY
SID
TX
I’ve got options on FCX and Vale as well as common and doing quite well.
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