"Red-hot turnaround for copper as optimism about China rises
BY:ROBIN BROMBY From: The Australian August 19, 2013 12:00AM
IF you believe copper is the bellwether metal, you'll be getting back into the market. And if you are long gold, you can rip up the suicide note.
The red metal hit $US7400 a tonne in London on Friday, the day the news hit that copper is attracting a premium of something like $US200/tonne from Chinese consumers needing to get their hands on some.
This will come as a bit of a shock to those who had been reading (here, among other places) of analyst assumptions that warehouses all over China were groaning under piles of unwanted copper. What a difference one month's good data out of Beijing can make.
Before last week's turnaround, copper had lost 20 per cent of its value since February. And it seems to be leading the rest of the gang back up the mountain of eternal market optimism.
The writer implies no investment recommendation. This report contains material speculative in nature. Investors should seek professional investment advice. The writer does not own shares in any company mentioned.
RMG Price at posting:
0.2¢ Sentiment: Buy Disclosure: Held
