As predicted
two months ago, the copper price has made a huge move upwards to $3.75/lb (Chart 1). Investors are worrying though, as the U.S. dollar is now strengthening again while stock prices decline. But I assure you that as long as the contango in copper doesn't fall down, the copper price will keep increasing. I will bet my copper contango theory on it. So don't count out the rise in stock prices just yet.
As a matter of fact, the copper contango widened this week, again with a rising copper price. That means we are still awaiting the massive spike upwards in copper.
You might be right that the copper price will spike, but Level of LME of copper inventory keeps rising.
BeantwoordenVerwijderenPerhaps there is no relationship between the amount of copper in store and the price, but the build up of inventory may be an indicator that "the rally we have seen in some of the
base metals will run dry" says Dominic Schnider of UBS.