Wednesday, November 16, 2011

Is Copper Set To Rally?

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A loosening policy stance on credit in China should be sufficient to boost demand for commodities such as copper, said Goldman Sachs in a note, as it maintained a buy call on June 2012 LME copper, although the position has lost money.  
"Although our long copper position opened in May 2011 remains substantially under water, our 12-month copper price target of $9,500/mt suggests substantial upside from current depressed levels," it said.
A Reuters report noted that the latest LME data showed copper stocks held in its global warehouses fell by 2,300 tons to 405,400 tons in London — their lowest since mid-February and down more than 70,000 tons from their mid-summer highs.

China, which accounts for about 40 percent of global copper demand, has picked up its buying of stocks of the metal, although concerns persist that the euro zone debt crisis might knock its exports.

United States Commodity Funds will begin trading its new “United States Copper Index Fund” (NYSEArca: CPER) Today, November 15, 2011. The investment objective of CPER is for the daily changes in percentage terms of its Units’ NAV to reflect the daily changes in percentage terms of the Copper Index, less CPER’s expenses. The Copper Index is designed to reflect the performance of the investment returns from a portfolio of copper futures contracts fully collateralized with 3-month U.S. Treasury Bills. LINK

If oil is indicating that there is truely an economic recovery...then copper should follow as well. Itz favorite plays on copper are Southern Copper SCCO & FreeportMcMoran FCX. If looking for dividends, SCCO has an 8.6% yield while FCX 2.5%.

Check out this video >>>LINK   Past ITZ Posts

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