Investing in Copper: Peru Strike Boon for Copper
By Ian L. Cooper
It was 2005 when the price of copper last hit a high of $4/lb. And no one will be surprised when it challenges its May 11 all-time high of $4.04. No one, especially GRESSOR, which, on April 25, 2007, called for a new high on the back of an April 30 Peru strike.
The reality of the Peruvian strike will only serve to create significant shortage of metals for China and Japan, which could lead to further panic-buying, jetting metals like copper through the roof. How high the copper ceiling is anyone’s best guess. But consider this: Peru represents up to 7.1% of global mining production, according to reports. An elongated strike will only serve as a boon for copper prices, for example. Couple that with shrinking copper stockpiles, and higher China demand, and the copper market will continue to jump.
Today, after failed talks, workers at about half of the 70 Peru mining unions joined the strike. Quite honestly, there is no near-term end in sight, not as long as Peru’s miners’ demands are not met. That includes a greater share of mining profits and improved pensions on the back of record metal earnings for producers. Copper, for one, has tripled in three years on China demand alone.
Take care,
Ian L. Cooper, Editor, Early Alert Trader
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