Crisis Investing: All Eyes on April 30...
By Ian L. Cooper
It was 2005 when the price of copper last hit its all time high of $4/lb. But by April 30, 2007, no one will be surprised if it happens again.
That’s when, according to reports, miners are threatening to strike to demand that the country’s president improve pension benefits and eliminate outsourcing prices. And that is the only trigger we need to long copper stocks.
You see, any widespread Peruvian strike could create significant shortage of metals for China and Japan, which could lead to a panic-buying spree, jetting metals like copper through the roof. How high that ceiling may be is anyone’s best guess at this point. But consider this: Peru represents up to 7.1% of global copper mine production, according to reports. Any disruption could easily spike copper.
That’s in addition to shrinking copper stockpiles, higher expectations of China demand. With China demand still heavy, the copper market (for one) will continue to rise. Our near-term catalyst (at this point) is the possible April 30, 2007 strike.
The editors of GRESSOR.com just issued a report highlighting companies to watch.
Take care,
Ian L. Cooper, Editor, GRESSOR.com
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