Gofer and The Vet....amazing chart of the London Inventories...
I suspect those in NY and Shanghai aren't fairing any better?
The DMI only says that in the face of falling inventories the price of Copper is a mild downtrend...and that at $1.40 the world will not run out of Copper; there's some coming from somewhere...As mentioned earlier, in the short term I don't much like the looks of Silver, destination at least $6, nor Gold, next port of call $410 or so...Copper??? appears to me down to somewhere...$1.25??... I think the hedge fund bears have the stage until something close to the end of the month...Good dollar rally from here and look out below...
Gofer, metal producing companies will make money at $1.40 copper, owners of the shares in developing properties without revenues might have a more difficult time....and it may be the shares of both types fully reflect current prices. Gold mining shares don't look to come alive until something north of $450 in seen, in my opinion, as increasing costs subtract from revenues and margins fail to improve.. Could the same be true for other base metal miners...?
I find myself with a whole list of shares where there are great expectations but only sideways to downward price action at this time. ..This is a mistake, I believe...given the chance I intend to pair back further...stand a bit further aside from the listless action, watch for a capitulation bottom of some sort or other evidence the trend has changed and there's some upside momentum building...Or until such time as it's official...."the World has run out of Copper....!!" It'll never run out of Silver...or Gold, as long as big NY Bank paper is a substitute.
Course of the USD and metals hinges on Capital Flows Data
"On Tuesday, markets will bracing for the U.S. capital flows report for November. The report has been a major factor in determining the dollar's price action, given the market's renewed focus on the U.S. current account deficit.
"Everybody is waiting for the Treasury flows data. In my mind, the data could trigger some sharp moves in the dollar either way, depending on the outcome. My guess is the dollar could either rise or fall 2 percent," said HVB's Wolf.
Bullish treasury flow data or some that is not so negative, combined with the deficit cutting spin coming out of the White House and hawkish Fed Speak on rates, and BINGO, we see the dollar at 85 on the Index..
jimsioi it's official...."the World has run out of Copper....!!" It'll never run out of Silver...or Gold, as long as big NY Bank paper is a substitute.
How true; all the metal markets are priced by the purveyors of paper and until the day that demand for actual metal exceeds supply and there is none left in any warehouse that will remain true.
The fact is that there are always naked sellers of copper paper who will sell in the face of all the fundamentals of supply and demand, just using technical analysis worked out from price charts. With copper, they will eventually burn, unless they are bailed out by the exchanges that house and protect them with ever changing rules.
Silver and gold are a different matter simply because they are PMs and have a significant investment role. Investment products can always be substituted for cash, bonds or barter providing the holder of the real metal can be induced to part with it.
Copper however as a industrial metal is a much harder proposition. People won't tear out their A/C, their electrical wiring, plumbing etc. in order to cash in their copper!
TIMES NEWS NETWORK[ MONDAY, JANUARY 17, 2005 12:24:45 AM] Sign into earnIndiatimes points MUMBAI: The copper lines laid by telecom companies which were considered obsolete, redundant and expensive in the wireless world, have got a new lease of life with the launch of broadband services in the country.
Telcos are expecting broadband services to spark off a fresh interest in landline phones. This in turn is expected to lead to a increase in demand for copper wiring.
Speaking to ET, AK Sinha, chairman of Bharat Sanchar Nigam (BSNL), said, “Broadband has increased the utility value of copper cables.
If broadband stimulates further demand for telephone lines, then we will need more copper cables.’’ Since broadband service requires a fixed line at home, its success would decide the future of wireline telephony in the country.
BSNL and Mahanagar Telephone Nigam (MTNL) have opted to launch broadband services using the ‘ADSL 2+’ technology, giving copper cables a fresh lease of life.
The copper cables are used for the last mile wiring for landline phones while optic fibre cables are used up to the junction box. “Copper is best suited for broadband access,’’ said Kuldeep Goyal, executive director, MTNL, Mumbai.
TYS sitting on a big chunk of copper, amongst others such as Ag, Zn, and Au. Has promo of J. Schachter out of Calgary. Has been on promo on ROBTV and CBC. Currently at 1.66 after two day pullback from 2.09. 1B tonnes possible according to Schachter grading about 1% copper weighted average so far. Schachter thinks stock will hit $3 by end of Feb and $10 this year. He has an extremely good track record, won best analyst in 2004 for his track record. Has had plenty of winners such as CUX (recommended it at .66 and now it is $14) Has got some heads turned! Could be bigger than Alumbrera and rival Grassburg...in terms of Cu.