Copper has long been regarded the bellweather of the world economy. Its spot price reflects where the markets believe the world economy is sitting. Its showing that the economy had a lull patch over the last 3-4 months, but is coming back to strength!
In June 2008 it peaked at $US9000 tonne, then the GFC occurred and it fell to a low of $US2900 per tonne in March 2008.
Right now, the US is growing albeit slowly, EU has just got over its debt crisis issue and China has been tapping the brakes to minimise the property price boom, before they commence their next 5 Year Development plan which starts in 2011-2016.
The price of copper (and it is a similar story for zinc, iron ore, coal, manganese) is sitting at 84.4% off its record high with the world economy growing at below average levels.
What is going to happen in 2011 when these economies start to grow at average levels and we have had 2 years of minimal investment in new mines and expansion in existing mines?
We should see some significant price rises (nee Record Prices) in Base Metals, Iron Ore, Coal and Gold in 2011, which will accelerate share price growth as well as mergers and acquisitions.
Select Chart Period 1-1-2008 to today's date
Copper Price $US Per Tonne last 18 months!
Now is the time to continue to accumulate these small cap shares like FWL!!!
http://www.lme.com/copper_graphs.asp
PS How do you guys load Pics onto HC? I tried copying and pasting the Copper Chart but it didnt appear? Thanks for your help!
LCG Price at posting:
6.8¢ Sentiment: LT Buy Disclosure: Held
