I saw these stories and could not help but wonder what their motivation is. Do you think they believe as gold and silver goes higher and higher people will start to turn to copper? http://www.telegraph.co.uk/finance/...r-captures-80pc-of-Londons-copper-market.html http://www.telegraph.co.uk/finance/...r-that-bought-1bn-worth-of-copper-on-LME.html
I suspect when the ETFs for copper are approved and available, there will be a movement similar to SLV, as it will be much more convenient to trade, but it will probably be in hundreds lbs or tons, so they can get the attractive and hyping price movements.
I was wondering what JP Morgan knows now that we don't. Looks like they're not gonna wait for the ETFs, they are buying up large amounts of copper now.
This is good news, copper prices rising means that the economy is poised for a comeback. Evidently there is some big money out there betting that the price of copper is going up.
LOL. By investing, if you mean do I hoard every copper cent I can get ? Yes I do. I recently discussed this on another thread. If you have $100k that you can set aside, instead of holding nickels or any clad coinage, copper cents will give you more bang for your buck. A nickel may have a melt value of over 6c, but 5 copper cents have a melt of 13c. Of course I believe US Silver coins a wise form of insurance. Small enough to convert to currency or trade value easily in case of economic collapse, maybe moreso than gold coins whose high value may limit trade of them. and in the event copper would collapse and lose most of it's value, the coin is still worth a cent. Although, I do not believe we will ever be forced to trade PM's for gasoline or flour, one should be prepared for any disaster, natural or economic. IMHO
The first thought that crossed my ornery mind was that JPM need the copper profits to help pay for the cost of holding their short positions in Silver. I have thought copper will go to $60.00 for a while now (over a year). I give it maybe 4-5 more years max. This thread may be long ago buried by then, but hopefully I will still have my copper, and maybe even more by then (I hope). Go CU go.
$60.00 a what? pound??? are you expecting hyperinflation? cause if that's the case there's no point in holding copper for worthless dollars...just have silver and trade for a "good" currency....
I agree that copper will likely never get that high in my lifetime. But copper does get consumed in large quantities, whereas gold and silver, not so much. And copper should protect you from inflation for that reason. As mining cost rise and demand increases, copper should do much, much better than currency as a way to protect a portion of one's assets. IMHO
I think a copper ETF would work alot like US Oil. It would be too costly to store large amounts of copper but easy to trade futures.
Word is - as I am sure everyone has heard by now - JPM has cornered the LME warehouse stocks of copper. Speculation is these warehouse stocks were obtained for the purpose of creating "CUIF" pronounced Cough in reference to a visit to the Proctologist an ETF indexed fund based on copper. As the fund grows LME warehouse stores will have to grow accordingly to miantain liquidity in the copper market. There is already a projected shortage of copper production over the next 5 years add in a billion dollar increase in warehouse stores - I see copper reaching $5.00 - maybe $5.50 in the next year or so.
I heard a person on CNBC today say that gold was going to continue down because it had a chart with a double head{Peak}. I have heard very few technical analysts giving guidance on gold or silver using such old favorites, I do not believe they apply, as so many other factors can readily come into play. Then on "Fast Money", it was said they thought copper was reaching a top. A cynical person might think they were trying to aid those who are gathering shorts as once gold and silver has a few down days, some people will start selling their copper before it goes down also. Commodities can suffer the same hype and mass followings that certain stocks can and have, but if a trader can see factors that imply continual demand ( after the shorts have made their money), then they should accumulate during the down trend. If they do not, or it is too scary, then obviously they should move to the sidelines and consider selling down. Use common sense. It will be an interesting time for a week or so I am sure Jim
I agree. They need to chart what PM's did in the 30's to get a parallel. But there was no social Security or unemployment insurance then, so even that probably would not be accurate ? The Great Recession as they are now calling it just might creat a unique trend. Only hope that I read it correctly. lol gary
Just expecting a few surprises. (transportation gliches and processing lead times delayed). This is just a feeling, not based on any real knowledge, except from knowing my own self. I might add, that copper will fall like a rock once its done going nuts. I feel like zinc will enjoy some up and up side too. Back to silver, yes I agree that would be best-investment wise, but I know how hard it is for me to let go of coins. I keep some copper shot on hand for hard times. I don't think I want to part with the silver or other coins. I suppose some of you can understand that kind of reluctance. Wheat backs are sweet. I plan on keeping them too - regardless where copper goes or does not go.
This reminds me of something Louis Rukeyser said years ago. He said that many guests came on his TV show and deliberately lied -- saying they were buying what they were actually selling -- and he knew for a fact that they were lying. He didn't want to make a scene of it on the show, but didn't invite them back. I think it is safe to assume that most of what analysts and traders say on TV is a deliberate lie.
