There was another article in todays finn review on the subject. Copper looks supported for both the short and long term. I recently read an indepth analytical doco on copper and the rate of new dicoveries. This also points to solid support for the future. Maybe the stars are finally lining up.
Copper, gold best bets to lift market sentiment • BY: SARAH-JANE TASKER • From:The Australian • September 06, 201212:00AM • THE rapid slide in the iron ore price is significantly weighing on investor sentiment in the resources sector, but analysts say there is hope in base metals - copper and gold the standouts. UBS global commodity analyst Tom Price said copper was the top pick for commodities. "China alone can support or drive up the copper price over a short period of time and that is why we are excited about it," he said. "Also, the US is coming back to life, their housing sector is recovering." Mr Price said aluminium, zinc and nickel were all over-supplied. UBS resources analyst Jo Battershill said structurally there were still some issues globally longer term that would support the copper price. "As Marius (Kloppers) said recently, the marginal cost of production for copper is irrelevant when there is a structural shortage and incentive prices is much more important . . . I talk to corporates every day and I'm told between $3-$3.50 a pound is required to bring new production on," he said. Mr Battershill said Sandfire Resources remained a market darling with its DeGrussa asset in Western Australia. He said OZ Minerals holding a significant stake in the miner also added support to its share price, as it was seen as a potential takeover target. Gold continues to be the shining light, which Mr Battershill said was all about quantitative easing. "The Chinese, the Indians and the emerging economies still see gold as a store of wealth and as long as there are three billion people that think that, then gold is going to keep going up," he said.
AVB Price at posting:
6.6¢ Sentiment: Buy Disclosure: Held
