Commodity Trade Mantra

Posts Tagged ‘Copper Prices’

Are Copper Prices and China Set to Rally?

In marked contrast to gold, copper looks to be set up for a sizable rally here. On its 1-year chart we can see that after its significant drop, it is down on an important support level that is certainly capable of generating a rally, despite its still bearishly aligned moving averages. Chances of copper rallying soon are greatly magnified by its latest COTs, which show that Commercials are now heavily long.

Deflation Scares Central Bankers - Can Gold Be Their Biggest Ally?

Every Central Banker dreads deflation. They’re doing everything they can to generate a 2% annual rate of inflation, but can’t get it. Well, the last thing you want to see is the gold price going down. If prices continue to drop, they fall to a point where they start to impact jobs. Drilling rigs & mines shut down. So in-fact, they want gold and silver prices, copper & oil prices to go higher.

Upcoming Labor Negotiations Might Boost Platinum, Copper Prices

The world’s #1 producing nations for platinum and copper are facing a common problem this week. And latest developments suggest this issue could be a potentially explosive one. The challenge is labor negotiations in the mining sector. Watch for the reaction of the unions to these offers, and for any signs of brewing unrest that could impact production in both of these critical countries.

For Copper Prices - It's Been a Bad Few Years

Copper prices have been falling for five years. By last year the situation had deteriorated enough to prompt a slew mine cutbacks, totaling several hundred thousand tonnes & the market is now expected to fall into deficit in this year. Copper prices have fallen so far that little downside remains. Positioning in the best copper equities today will pay off down the road.

Gold Deposits Worth $2-$3B That Can Be Bought Now For $15Mn

Think about a company that has a very, very large gold deposit. This company 5 years ago would have had (while only owning half the deposit) a $2 billion market cap with one of the biggest copper-gold porphyry deposits in the world. Now it owns the entire deposit and has about an $80 million market cap for the whole deposit. You get twice as much for about 4% of the price.

7 Reasons Why Oil Could Fall Even Lower Before Christmas

While OPEC has been reticent and reluctant to defend its oil production levels this year, Russia has been unabashedly boosting exports after six years of declines. As refinery improvements have caused less domestic crude oil demand, this has opened up a window of opportunity for the country to export more.

Copper Price Forecast 2016: Producers Under Pressure

With copper at $2, roughly 20 percent of the world’s production is not economic on a C1-cash-cost basis. Producers have been able to hang on thus far, but if low prices persist, there could be further production curtailments and mine shutdowns down the road. Hopefully that will be a catalyst that will help prices move higher.

Is a $13 or $15 Handle, The Next Level for Silver?

The fundamental price of gold is about $150 over the market price, in other words, at about a 12.2% discount. Silver is trading below its fundamental price also, but only at a 4.2% discount. If it were to go to its full fundamental value, and assuming that doesn’t change, it would be up near $15. If it follows gold, at a discount of 12.2%, silver prices would be down near $13.

Copper Prices Decline To Levels Below Cost of Production

There are various estimates for what the Marginal Cost of getting Copper out of the ground is before supply is taken offline completely. But it is reasonable to assume that Copper is currently being priced well below the long term Production Cost of Processing the Industrial Metal. The $2 Copper could well be setting up for an ample short covering rally before 2015 ends.

The Undeniable Truths about Gold and Silver

The reasons to own gold and silver are getting more compelling than ever. What really gets the goat of gold and silver investors is that, despite very good fundamental reasons to own the metals, somehow those fundamentals never show up in the price. The price action in recent years is enough to make gold and silver bulls question reality.

Copper Breaches $5000, Breaks Below 15-Year Trendline

The plunge in copper means almost one in five mines globally is losing money. Some mines will have to cut supply or close if prices stay so low. While disruptions in mining have reduced supply, it’s not been enough to support prices. Copper producers are likely to miss production targets by up to one million tons this year. This should provide a cushion for copper prices.

Price Takers and Price Makers in World Commodities

Over 99.9% of all world consumers and producers are price takers and not price setters, & yet their total consumption / production has little to do with how prices of many world commodities are determined. How can this be? There is a great force (excessive speculative positioning) that’s setting the price & rendering the law of supply and demand as almost non-existent.

Blame the Fed for the Commodities Slump

Crash on the commodities highway: So far, the Fed’s cheap credit has exaggerated and prolonged the bear market in oil. The price per barrel of US crude oil is down 53% over the last 12 months. Today, the price of coal is down 70% from four years ago. Dr Copper, too, says it’s going to be a rough second half of the year for the global economy.

Grab 20% In Two Months Or Less, As Dr. Copper Gets Well Again

For copper the elevator down accelerated after the metal lost the $3 mark. Sagging demand in China & Europe was the final nail. But this is where your opportunity comes into play today. Something’s different this time. Copper bears are capitulating. A stealth rally is in the works. And it could net you 20% gains in no time.

Controlling Copper and Silver Prices

About China and silver – China is the world’s largest industrial user, almost certainly the world’s largest refiner, and the government owns all the refineries. China imports large quantities of doré 1 and also base metal ores containing silver. So how she goes about this business is highly relevant to the silver price.

How to Make a Quick 20% as Copper Rises from the Dead

Copper dropped below $2.50 in late January on heavy trading volume. Plunges like these come lightning-fast. But buyers quickly stepped in. We’re seeing the beginning stages of a potentially powerful comeback copper rally. You could easily net double-digit gains in a matter of weeks if this former loser starts cranking up the heat.

Is Market Sentiment Shifting to Gold?

When you look at the world economy, there’s no shortage of worries. Most market strategists do not view gold as a currency but only as a commodity. The rule: dollar up, gold down. But on viewing gold as a currency compared to many other currencies, including euro, ruble, yen & rupee, it has been a good place to be in over the last year.

On The Coming Collapse Of Copper

Metals and mining commodities – including the base and bulk commodities, steel and cement – are highly exposed to a slowdown in the Chinese property, with over 40% of Chinese demand for cement and copper in particular consumed in the construction sector.

Copper, Nickel and Zinc Won't Be Cheap for Long

A big driver for nickel is the steel market, and this has been relatively bearish. Nickel ore stockpiles in China and elsewhere are still high, but are now being drawn down toward potentially critical levels. There is a bullish argument that we could see the nickel market slip into deficit by as early as mid-2015.

The World Has Less Than 5 Days Worth Of Copper Inventories

Global copper inventories fell from 477,014 mt in Mar, to 355,075 mt in Apr. Why would global copper inventories be falling if production is increasing, demand falling & China with a supposed GLUT of copper inventories to work through? Why did Chinese copper imports increase 18.7% Jan-Jul? Does that make any sense whatsoever?

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